Ripple-Archax Partnership Brings First Tokenized Money Markets to XRP Ledger

Key Takeaways

• Ripple partners with Archax to bring tokenized money markets to XRP Ledger.
• The partnership will introduce a £3.8 billion liquidity fund on the XRPL.
• The RWA tokenization market is expected to grow from $1 billion to $20 trillion in five years.

Ripple has teamed up with UK-based Archax to bring tokenized money market funds to the XRP Ledger (XRPL).

Archax, regulated by the UK’s Financial Conduct Authority (FCA), will introduce the popular £3.8 billion US dollar Liquidity Fund from asset manager abrdn to the XRPL.

Ripple Partners with Archax for Tokenized Money Markets

This collaboration marks Archax and XRPL’s first real-world tokenization (RWA) project.

Ripple will invest $5 million in the Lux fund, part of the larger fund tokenized on the XRPL. The firm will offer its custody services, bringing years of experience in institutional-grade blockchain solutions.

Meanwhile, Archax will provide the tokenization technology for the project. The fund will be available to institutional investors only.

Graham Rodford, CEO of Archax, said that financial institutions are understanding the value of adopting digital assets for real-world use cases.

“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.”

A Growing Trend in Tokenization

RWA tokenization is becoming a key trend in the financial world.

According to McKinsey , tokenized money market funds have already surpassed $1 billion in assets, with the market expected to grow to $16 trillion by 2030.

BlackRock, State Street, and UBS are among the big names that have ventured into this space. This year, the world’s largest asset manager launched a tokenized fund on Ethereum.

As RWA tokenization continues to gain momentum, Ripple, with its blockchain solutions and deep ties to the traditional financial sector, is positioned at the forefront of this evolution.