Quick take:
- It is the first tokenised money market fund on the XRPL and is part of XRP Ledger’s goal of becoming a leading RWA tokenisation and institutional DeFi platform.
- The launch follows an ongoing collaboration between Archax and Ripple.
- Ripple will tokenise $5 million worth of Abrdn’s Lux fund.
Ripple, has launched the first tokenised money fund on the XRP Ledger. The announcement comes after Edinburg, UK-based investment company, Abrdn (formerly Standard Life Aberdeen) teamed up with fellow UK-based and FCA-regulated digital asset exchange to tokenise part of its US dollar-denominated £3.8 billion Liquidity Fund (Lux).
The launch is part of XRPL’s goal of becoming a leading RWA tokenisation and institutional DeFi platform, Ripple said in the announcement on Monday.
Ripple said the launch is also part of its ongoing collaboration with Archax, adding that “It marks an important step towards unlocking operational cost savings and settlement efficiencies by deploying capital markets infrastructure on the XRPL.”
The announcement comes as some forecasts for the real-world tokenisation market estimate the value to reach $16 trillion by 2030. The industry is already approaching $13.5 billion, according to RWA.xyz, a platform that tracks the value of real-world tokenised assets.
The enterprise blockchain services provider plans to tokenise $5 million worth of Abrdn’s Lux fund, with the allocation representing “part of a larger fund that Ripple will allocate to RWAs on the XRPL provided by a range of asset managers,” the company said.
Commenting on the announcement, Markus Infanger, Senior Vice President, RippleX said in a statement: “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 tokenisation.”
Duncan Moir, Senior Investment Manager, Abrdn commented: “The next evolution of financial market infrastructure will be driven by the broader adoption of digital securities. Real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain. The XRPL is an established venue for this thanks to its institutional-grade functionality, cost efficiency and built-in compliance capabilities.”
Abrdn joins the likes of Franklin Templeton and BlackRock, among traditional asset management companies that have launched tokenised money funds.
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