Ripple launches $4.77B tokenised fund on XRP Ledger

Ripple (CRYPTO:XRP) has introduced the first tokenised money market fund on the XRP Ledger (XRPL), featuring abrdn’s $4.77 billion US dollar Liquidity Fund.  

The initiative is in partnership with Archax, a UK-based Financial Conduct Authority-regulated cryptocurrency exchange, broker, and custodian, which provides access to abrdn’s fund.  

The tokenisation aims to bring real-world assets (RWAs) onto blockchain platforms to enhance operational efficiency and reduce settlement costs.  

Ripple highlighted that this move reflects the increasing integration of RWAs into blockchain ecosystems.  

“Real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain,” remarked Duncan Moir, senior investment manager at abrdn.

Only professional investors will be eligible to access the tokenised fund through Archax’s platform.  

Ripple has also allocated $5 million into tokens tied to abrdn’s fund as part of its strategy to expand its footprint in the RWA market.  

Boston Consulting Group estimates the RWA sector could grow to $16 trillion by 2030.  

Currently, tokenised money market funds manage over $1 billion in assets, with BlackRock’s USD Institutional Digital Liquidity Fund accounting for $443.9 million, according to data from Dune Analytics.  

“There is now real momentum building for tokenised real-world assets,” stated Archax CEO Graham Rodford, emphasising the growing adoption of tokenised RWAs.

Ripple faces competition from platforms like Ethereum (CRYPTO:ETH) and Stellar (CRYPTO:XLM) in the RWA space.  

Ethereum leads with $3.07 billion in tokenised assets, followed by Stellar with $386.2 million.  

At the time of reporting, the XRP price was $1.44.