UK-based Exchange Archax Partners with Ripple Labs to Tokenize Abrdn’s Fund via XRPL

Key Notes

Ripple intends to allocate $5 million into tokens on abrdn’s Liz fund, which will align with its plans for enhancing RWA projects on the XRPL blockchain.XRP price has rallied over 150 percent in three weeks majorly fueled by rising demand from whale investors.

Archax, a cryptocurrency exchange that is regulated in the United Kingdom, has partnered with Ripple Labs, a blockchain payment company based in the United States, to tokenize abrdn’s money market fund on the XRPL chain. According to the announcement, the money market fund comprises part of the abrdn’s £3.8 billion US dollar liquidity fund (Lux).

The tokenization of abrdn’s money market fund on the XRPL represents the first of its kind on the XRP-based blockchain. As a result, Archax believes more tokenization of money market funds on the XRPL network will happen in the near term, amid the mainstream adoption of digital assets and web3 platforms.

Moreover, more than $1 billion has already been tokenized on money market funds and some experts believe that the sector could scale to over $16 trillion by 2030. To begin with, Ripple intends to allocate $5 million into tokens on abrdn’s Liz fund, which will align with its plans for enhancing RWA projects on the XRPL blockchain.

“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 tokenization,” Markus Infanger, Senior Vice President at RippleX, noted.

According to Duncan Moir, Senior Investment Manager at abrdn exchange, the evolution of financial markets will heavily be determined by the broader adoption of digital assets globally. Graham Rodford, CEO of Archax, highlighted that institutional investors are fast adopting digital assets in enhancing real-world assets (RWA).

“In collaboration with Ripple, we are excited to help our clients such as abrdn, which manages over half a trillion pounds in assets (as of Q2 2024), to bring them to the XRPL using Archax’s tokenization engine. Institutional buyers can now purchase abrdn’s Lux fund directly from Archax in token form,” Rodford noted.

Impact of RWA Tokenization on XRPL and XRP

As the top holder of XRP XRP $1.43 24h volatility: 6.2% Market cap: $82.07 B Vol. 24h: $11.96 B through the escrow wallets, Ripple has grown to a unicorn Web3 firm with immense potential for further growth. Ripple’s undisputed victory in a legal dispute against the US SEC, more so with the resounding victory of pro-crypto leaders led by Donald Trump, has placed XRPL and XRP on a better chance of winning ahead.

According to the latest market data, XRP price has gained more in value in the past four weeks compared to Bitcoin’s year-to-date performance. As Coinspeaker reported, the mainstream adoption of XRP fueled by whale investors has bolstered the underlying bullish outlook.

Meanwhile, Ripple remains committed to the long-term success of XRPL and XRP through the Web3 space. The ongoing rollout of the XRPL’s native stablecoin dubbed RLUSD will significantly enhance XRP’s use in cross-border payments.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Blockchain News, Cryptocurrency News, News