UK Exchange Archax Collaborates with Ripple to Tokenize Abrdn’s Fund
Archax, a regulated cryptocurrency exchange in the United Kingdom, has partnered with Ripple Labs, a U.S.-based blockchain payment company, to tokenize abrdn’s money market fund on the XRPL chain. This fund is part of abrdn’s £3.8 billion US dollar liquidity fund (Lux).
The tokenization of abrdn’s money market fund on XRPL marks a first for the XRP-based blockchain. Archax anticipates increased tokenization of money market funds on the XRPL network due to growing mainstream adoption of digital assets and Web3 platforms.
Over $1 billion has already been tokenized in money market funds, with projections suggesting the sector could exceed $16 trillion by 2030. Ripple plans to invest $5 million into tokens on abrdn’s Liz fund, supporting its initiatives for real-world asset (RWA) projects on the XRPL blockchain.
Markus Infanger, Senior Vice President at RippleX, stated that the introduction of abrdn’s money market fund on XRPL showcases how real-world assets are being tokenized to improve operational efficiencies, strengthening XRPL's position as a leading blockchain for RWA tokenization.
Duncan Moir, Senior Investment Manager at abrdn, emphasized that the evolution of financial markets will depend heavily on global digital asset adoption. Graham Rodford, CEO of Archax, noted institutional investors are rapidly adopting digital assets to enhance RWAs, allowing clients like abrdn, which manages over half a trillion pounds in assets as of Q2 2024, to access abrdn’s Lux fund in token form through Archax.
Impact of RWA Tokenization on XRPL and XRP
Ripple, as the top holder of XRP through escrow wallets, has evolved into a significant Web3 firm with substantial growth potential. Its recent legal victory against the US SEC has improved the outlook for XRPL and XRP.
Recent market data indicates that XRP has appreciated more in value over the past four weeks compared to Bitcoin’s year-to-date performance. Reports suggest that the mainstream adoption of XRP, driven by whale investors, has enhanced its bullish outlook.
Ripple remains focused on the long-term success of XRPL and XRP within the Web3 ecosystem. The launch of the XRPL’s native stablecoin, RLUSD, is expected to significantly boost XRP's utility in cross-border payments.