Ripple, the blockchain payments innovator, has collaborated with Archax—the UK's first FCA-regulated cryptocurrency exchange—to tokenize asset manager abrdn’s $4.77 billion US Dollar Liquidity Fund on the XRP Ledger (XRPL). This milestone marks the first money market fund of its kind on XRPL, unlocking institutional-grade real-world asset (RWA) exposure for professional investors.
Key Features of the Tokenized Fund
- Professional Investor Access: Initially available exclusively to qualified investors via Archax’s tokenization platform.
- **Ripple’s $5 Million Commitment**: Ripple will invest $5 million in tokens representing shares of abrdn’s fund.
- On-Chain Efficiency: Streamlined investment processes and instant settlements leveraging XRPL’s infrastructure.
👉 Explore how tokenization is transforming finance
Why This Matters
Tokenizing RWAs like money market funds reduces operational costs and enhances liquidity. Abrdn’s Duncan Moir highlights the "real benefits" of moving traditional finance processes on-chain, including:
- Faster settlements (seconds vs. days).
- 24/7 market accessibility.
- Transparent ownership tracking via blockchain.
Ripple’s RWA Market Strategy
Ripple aims to capture a share of the projected $16 trillion RWA market** by 2030 (per Boston Consulting Group). Competitors like Ethereum and Stellar have already tokenized **$30.7 billion and $3.86 billion** in RWAs, respectively. Government securities dominate tokenized RWAs, accounting for **$22.8 billion.
FAQ Section
Q: Who can invest in this tokenized fund?
A: Only professional investors approved via Archax’s platform.
Q: What’s the minimum investment?
A: Details remain undisclosed, but Ripple’s $5M commitment sets a benchmark.
Q: How does XRPL compare to Ethereum for RWAs?
A: XRPL offers lower fees and faster transactions, but Ethereum has broader adoption.
👉 Discover more about XRPL’s capabilities
Looking Ahead
Archax CEO Graham Rodford notes "real momentum" for tokenized assets. As regulatory clarity improves, expect more funds to migrate on-chain—with Ripple positioned as a key infrastructure provider.
Keyword integration: XRP Ledger, tokenization, real-world assets, money market fund, Ripple, Archax, abrdn, blockchain finance.