Ripple Partners Archax to Launch First Tokenized MMF on XRP Ledger

Ripple has partnered with Archax, a UK-based FCA-regulated digital asset exchange, broker, and custodian, to launch a tokenized money market fund (MMF) on the XRP Ledger (XRPL).

The fund comprises part of abrdn’s £3.8 billion US dollar Liquidity Fund (Lux) fund and represents the first tokenized money market fund on the XRPL.

This milestone shows the growing role of blockchain in transforming traditional finance, bringing real-world assets (RWAs) on-chain.

Collaboration Between Ripple, Archax, and Abrdn

This development comes from the partnership between Archax, Ripple, and abrdn, a global asset manager. Archax has introduced a tokenized version of abrdn’s £3.8 billion US dollar Liquidity Fund (Lux) on the XRPL. Ripple has also invested $5 million in tokens tied to the fund, highlighting the blockchain’s potential to streamline investment processes.

However, the partnership, which marks the first tokenized MMF on XRPL, positions the blockchain as a leading platform for institutional decentralized finance (DeFi) and RWA tokenization.

The funds will circulate across multiple blockchains, including XRPL, Hedera Hashgraph, and Arbitrum, thus expanding their reach and utility.

Tokenized money market funds already exceed USD$1 billion in assets under management, with reports projecting that tokenized assets could reach a market value of $16 trillion by 2030 largely driven by strong market demand.

Revolutionizing Financial Market Infrastructure

The adoption of blockchain technology in financial markets offers several advantages. Duncan Moir, Senior Investment Manager at abrdn, noted that digital securities are the future of financial infrastructure.

“The next evolution of financial market infrastructure will be driven by the broader adoption of digital securities,” he stated. He also emphasized that by leveraging XRPL’s institutional-grade functionality, asset managers can achieve significant operational efficiencies, reducing both costs and settlement times.

Furthermore, RippleX Senior Vice President, Markus Infanger, also explained XRPL’s role in the on-chain economy.

“This development exemplifies how real-world assets are being brought on-chain to streamline processes and reduce costs. The on-chain economy is evolving rapidly, and Ripple remains committed to supporting financial institutions in leveraging blockchain for utility at scale.” he stated.

Notably, the announcement of the tokenized Money Market Fund (MMF) coincides with a bullish run for XRP, Ripple’s native cryptocurrency.

Over the past week, XRP’s price surged by 31%, reaching $1.48, with a 24-hour trading volume of $12.52 billion according to data from CoinMarketCap.