Breaking: Ripple Announces First Tokenized Money Market Fund on XRP Ledger

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As a seasoned analyst with a decade of experience in the cryptocurrency market, I have witnessed the rapid evolution of this industry and the significant role that partnerships play in shaping its trajectory. The latest development between Ripple, Archax, and abrdn is an exciting step towards mainstream adoption of digital assets and decentralized finance (DeFi).

Ripple, a company specializing in cryptocurrency payments, unveiled its inaugural tokenized money market fund in collaboration with FCA-approved crypto exchange Archax and UK investment manager abrdn. This innovative financial product will operate on the XRP Ledger (XRPL) blockchain. The announcement promptly sparked interest among traders, leading to a 6% increase in XRP’s value today.

XRP News: Ripple, Archax Announces abrdn Fund Tokenization

According to a statement from Ripple on November 25th, Archax has grown its selection of tokenized investment funds by partnering with UK asset manager abrdn. As a result, an abrdn money market fund is now available in a digital form on the XRP Ledger (XRPL). This new fund is part of abrdn’s £3.8 billion US dollar Liquidity Fund (Lux) portfolio.

As a researcher delving into the realm of blockchain, I’m excited to note that Ripple has pioneered the creation of the first tokenized money market fund on the XRP Ledger (XRPL). This groundbreaking initiative is poised to strengthen XRPL’s status as a leading platform for real-world asset (RWA) tokenization and institutional decentralized finance (DeFi), paving the way for a more inclusive and efficient financial ecosystem.

It’s predicted that the market for tokenized assets could grow to an impressive $16 trillion by the year 2030, a significant achievement. This growth would pave the way for substantial cost reductions and improved settlement processes by employing capital markets infrastructure on the XRP Ledger (XRPL).

Today, together with Archax Exchange and Aberdeen Standard Investments, we’re thrilled to unveil a groundbreaking development: The debut of the first tokenized money market fund on the XRP Distributed Ledger!

By 2030, it’s estimated that we could see a staggering $16 trillion worth of assets tokenized. This monumental figure promises significant cost reductions and streamlined settlement processes as capital markets embrace this technology.

— Ripple (@Ripple) November 25, 2024

Crypto Payments Giant Deepens Partnership With Archax

Ripple announced it would invest $5 million in tokens within abrdn’s Lux fund, which is a larger allocation meant for Ripple-managed Resources (RWAs) on the XRP Ledger (XRPL), managed by various asset managers.

As an analyst, I would articulate it this way: “I observed that the entry of abrdn’s money market fund onto the XRPL showcases the process of real-world assets being converted into digital tokens, thereby improving operational efficiencies. This action solidifies the XRPL as a key player in the realm of blockchain technology for real-world asset tokenization.

In June, Archax and Ripple partnered to bring hundreds of millions of dollars of tokenized RWAs onto the XRP Ledger (XRPL). Ripple CEO Brad Garlinghouse said it will help establish the XRPL as one of the leading blockchains for RWA tokenization.

Last week, Archax added State Street, Fidelity International and Legal & General Investment Management (LGIM) funds to its tokenized RWA offerings. These tokenized funds will initially be available on XRP Ledger (XRPL), Hedera and Arbitrum blockchains.

In the last day, the value of XRP climbed by 6%, and it’s now being exchanged for $1.49. The price range over the past 24 hours was between $1.31 (low) and $1.54 (high). Additionally, there has been a slight uptick in trading volume, suggesting ongoing enthusiasm from traders. Moreover, the total XRP futures open interest reached an unprecedented high of $2.60 billion, with large investors buying over 250 million coins during the weekend.

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2024-11-25 16:06