 ▲ XRP |
Ripple has set a new milestone in the real-world asset tokenization market by collaborating with a major UK asset manager to bring a multibillion-dollar fund into the blockchain ecosystem.
According to crypto media outlet The Crypto Basic on February 11 (local time), Ripple has expanded its partnership with digital asset exchange Archax to launch abrdn’s money market fund, one of the UK’s largest asset managers, in tokenized form on the XRP Ledger. The core of this collaboration is to bring abrdn’s approximately $3.8 billion U.S. dollar liquidity fund onto the XRP Ledger blockchain network. This is set to become the first case of a tokenized money market fund implemented on the XRP Ledger.
To solidify its leadership in the real-world asset tokenization sector, Ripple directly invested $5 million into the fund to support the project. Archax, a digital asset exchange and custodian approved by the UK Financial Conduct Authority (FCA), will serve as the technical engine converting abrdn’s assets into digital tokens. Institutional investors will be able to directly purchase tokenized shares of abrdn’s fund through Archax while benefiting from the XRP Ledger’s fast settlement capabilities and operational efficiency.
Markus Infanger, Senior Vice President at Ripple, emphasized that this achievement demonstrates the XRP Ledger’s suitability as a platform for institutional-grade financial services. “The inclusion of abrdn’s money market fund on the XRP Ledger shows how real-world assets can maximize operational efficiency on blockchain,” Infanger said. Ripple plans to continue building an environment where financial institutions can securely tokenize and exchange assets using its custody solutions.
The financial industry forecasts that the total value of tokenized assets worldwide could reach $16 trillion by 2030. To capture this vast market opportunity, Ripple aims to bring hundreds of millions of dollars in additional real-world assets onto the XRP Ledger through its collaboration with Archax. The tokenization of abrdn’s fund is viewed as a strategic move to reduce transaction costs and streamline settlement processes by shifting traditional capital market infrastructure on-chain.
The project involving Ripple, abrdn, and Archax demonstrates that virtual asset technology has entered a stage where it creates tangible value by integrating with real financial infrastructure. The digitalization of large-scale assets based on the proven stability and scalability of the XRP Ledger is expected to accelerate the digital transformation of the global asset management industry.
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