In a recent press release, renowned blockchain technology and cryptocurrency company, Ripple, has partnered with Archax to launch a new financial product, a Tokenized Money Market Fund, from Abrdn (formerly Standard Life Aberdeen) on its XRP Ledger platform.

Ripple’s partnership with the digital asset exchange and brokerage firm and the global investment company will allow investors to pool their money and invest in a diversified portfolio of low-risk, short-term debt securities.

These investors will be able to invest in these securities while leveraging the benefits of blockchain technology and the XRP Ledger’s fast and secure settlement capabilities.

Ripple Unveils Industry-First Tokenized Fund on XRPL

The Tokenized Money Market Fund is part of abrdn’s £3.8 billion US Dollar Liquidity Fund (Lux) and represents a historic first for XRPL, introducing a new product category.

According to global management consulting firm, McKinsey, Ripple’s entry into the tokenized money market fund comes as the sector surpasses $1 billion in assets under management, and some experts predict a potential $16 trillion valuation by 2030, driven by robust demand.

As part of its strategic investment in Real-World Assets on XRPL, Ripple will allocate $5 million of tokens to abrdn’s Lux fund, alongside other asset managers.

Ripple’s Senior Vice President, Markus Infanger, commented, “The arrival of abrdn’s money market fund on XRPL demonstrates how real-world assets are being tokenized to enhance operational efficiencies, while further reinforcing the XRPL as one of the leading blockchains for real-world asset tokenization.”

“There is no question that the on-chain economy is gaining traction. By working with companies like Archax, we are excited to help financial institutions like abrdn to seize the incredible opportunity represented by blockchain and digital asset technology to deliver utility at scale.”

Ripple Partners with Archax to Launch a Tokenized Fund

Ripple’s latest partnership with Archax builds on an existing relationship, with Archax having employed Ripple’s digital asset custody services since 2022, laying the foundation for their current collaboration.

Concerning their recent collaboration, Archax’s CEO, Graham Rodford, said “In collaboration with Ripple, we are excited to help our clients such as abrdn, which manages over half a trillion pounds in assets (as of Q2 2024), to bring them to the XRPL using Archax’s tokenization engine. Institutional buyers can now purchase abrdn’s Lux fund directly from Archax in token form.”

In a related development, global financial giant UBS, launched its inaugural tokenized fund, UBS USD Money Market Investment Fund Token, or uMINT, on the Ethereum blockchain.