Archax, the UK’s FCA-regulated digital asset exchange, broker, and custodian, has introduced a tokenized version of a money market fund managed by UK asset manager abrdn on the XRP Ledger (XRPL). 

The fund is part of abrdn’s $4.8 billion US dollar Liquidity Fund (Lux) and represents the first tokenized money market fund on the XRPL, showcasing its growing role in real-world asset (RWA) tokenization and institutional decentralized finance (DeFi).

The development stems from a collaboration between Archax and Ripple, a leader in blockchain and crypto solutions. By utilizing XRPL, the initiative aims to deliver operational cost savings and settlement efficiencies for capital markets, as stated in the press release.

According to McKinsey, tokenized money market funds now exceed $1 billion in assets under management, with projections suggesting tokenized assets could reach $16 trillion by 2030. Ripple is investing $5 million into tokens on abrdn’s Lux fund as part of a larger allocation to RWAs on XRPL in collaboration with asset managers.

Duncan Moir, Senior Investment Manager at abrdn, stated that the adoption of on-chain financial market infrastructure offers significant efficiency gains in investment and cash settlement processes. Markus Infanger, Senior Vice President at RippleX, emphasized XRPL’s capabilities for institutional-grade tokenization and compliance.

Archax’s CEO, Graham Rodford, noted the growing interest from financial institutions in tokenized real-world assets, describing the initiative as part of broader momentum in the tokenization of equities, debt instruments, and money market funds. 

Rodford highlighted Archax’s role in enabling institutional buyers to purchase tokenized units of abrdn’s Lux fund directly.