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Reading: First Tokenized Money Market Fund Launched by Ripple on XRPL, abrdn
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Investor's Crypto Daily > Blog > Headlines > Cryptocurrency News > First Tokenized Money Market Fund Launched by Ripple on XRPL, abrdn
Cryptocurrency News

First Tokenized Money Market Fund Launched by Ripple on XRPL, abrdn

Last updated: November 26, 2024 7:17 am
By Michelle Whelan 3 Min Read
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  • XRPL emerges a leader in RWA tokenization with abrdn’s Liquidity Fund Integration.

  • Ripple invests in $5M to boost institutional acceptance of tokenized assets.

  • Archax’s regulated platform improves institutional access to tokenized funds.

Ripple, Archax and abrdn partnered up to introduce the world’s first tokenized money-market fund on the XRP Ledger. This collaboration shows how blockchain is becoming more integrated into traditional finance.

Contents
XRPL Emerges As Hub for Tokenized AssetsRipple invests in tokenized marketsLeading Institutional DeFi

The fund, which is part of abrdn’s $3.8 billion US Dollar Liquidity Fund demonstrates blockchain’s ability to improve asset management. The initiative, which leverages XRPL’s infrastructure, aims to reduce costs and simplify settlement processes in order to improve efficiency in the financial markets.


XRPL Emerges As Hub for Tokenized Assets

XRPL is establishing itself as a center for real-world assets tokenization (RWAs). This new project is in line with their prediction that tokenized assets would reach a value as high as $16 trillion by the year 2030.

XRPL’s compliance-ready features, cost-effective operations and easy-to-use interface make it an ideal platform for institution applications. Its scalable framework integrates advanced functionalities like tokenization, escrow and trading. Archax is the first FCA-regulated exchange for digital assets. It provides direct access to tokenized funds, demonstrating blockchain’s practical application for institutional investors.


Ripple invests in tokenized markets

Ripple has invested $5 million in tokens that are linked to abrdn’s Liquidity Fund. This is part of a broader plan to allocate capital towards RWAs on XRPL.

Ripple has a partnership with Archax which has been using Ripple’s custody solution since 2022. This ensures a safe framework for storing tokenized assets, trading them, and transferring them. This collaboration provides institutional investors with efficient access to tokenized financial product via a regulated market.


Leading Institutional DeFi

This initiative shows the momentum behind tokenized asset as financial institutions explore the potential of blockchain. Archax’s tokenization engine is a key component in tokenizing assets such as equities and debt instruments.


Read Also: New Ripple/Archax Deal Bets on Tokenized Real World Assets


Abrdn’s entry, with over PS500 billion of assets under management signals a growing confidence in blockchain-based solutions. Ripple’s expertise with global payments and digital assets custody further solidifies XRPL as a reliable platform to support institutional-grade DeFi.

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