Ripple Collaborates with Archax to Tokenize Abrdn’s £3.8B Liquidity Fund on XRP Ledger

• Ripple Labs is bringing tokenized funds to the XRP Ledger through Archax.
• The broader use cases to attract institutional investors can drive massive XRP growth.

Ripple Labs has expanded its partnership with the UK’s regulated custodian, Archax, to provide access to Abrdn’s tokenized fund on the XRP Ledger (XRPL). Notably, the fund is part of Abrdn’s £3.8 billion US dollar Liquidity Fund (Lux).

XRPL Achieves New Milestone  

It is also the first tokenized money market fund on the XRPL. This achievement solidifies the blockchain’s position as a leading player in Real-World Asset (RWA) tokenization and institutional Decentralized Finance (DeFi). 

Implementing capital markets infrastructure on the XRPL is also a major step toward reducing operational costs and enhancing settlement efficiency.

In an X post, Ripple noted that the tokenized asset market could reach $16 trillion by 2030, indicating strong market demand. Ripple has committed to the industry by pledging to invest $5 million in tokens linked to Abrdn’s Lux fund. 

Today, in partnership with @ArchaxEx and @abrdn_plc, we’re excited to announce the first tokenized money market fund on the XRP Ledger.

With $16T in tokenized assets projected by 2030, this milestone unlocks cost savings and settlement efficiencies by deploying capital markets…

— Ripple (@Ripple) November 25, 2024

Ripple’s contribution is part of a bigger fund that will be distributed to RWAs using XRPL, which various asset managers offer.

Abrdn’s Senior Investment Manager, Duncan Moir, noted that the efficiency of moving the end-to-end investment and cash settlement process on-chain would drive real-world benefits. 

“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 assets technology to deliver real utility at scale,” added Markus Infanger, Senior Vice President at RippleX.

Since 2022, Archax has used Ripple’s digital asset custody solutions to enable secure storage, tokenization, and asset exchange. 

As CNF reported earlier this month, Ripple and Archax collaborated to launch over $100 million in tokenized assets on XRPL. Both parties have even admitted to having similar compliance objectives. 

In June, Ripple’s CEO Brad Garlinghouse shared his excitement about the firm’s collaboration with Archax. He said the partnership will help establish the XRPL as one of the leading blockchains for RWA tokenization.

XRPL’s Advantageous Position in Tokenization

Ripple’s XRPL has emerged as a major player in real-world asset tokenization, potentially rivaling financial giants. 

More investors are now keeping their tokenized money market fund units on the XRPL. The blockchain is designed specifically to satisfy the requirements of financial institutions, with native capabilities such as tokenization, trading, and escrow.

Ripple has leveraged XRPL’s capabilities for over a decade to enable financial use cases such as stablecoin issuance, digital asset custody, and international payments. The shift in interest from XRP to the XRPL technology underscores its early roots as a unique layer-1 blockchain.

As reported by CNF, XRPL’s ability to address the complex challenges of real-world asset tokenization positions it as a strong player in this field. 

Meanwhile, XRP continues to show strong price momentum. As of this writing, XRP price jumped 2.8% in the past 24 hours to trade at $1.40. The 24-hour low and high are $1.31 and $1.54, respectively.