Hassan Maishera
TL;DR
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Ripple has launched a tokenized money market fund on the XRP Ledger.
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This comes following its partnership with Archax.
Ripple and Archax Partner to Launch a Tokenized Money Market Fund
Ripple announced in a blog post on Monday that it has partnered with Archax, the first FCA-regulated digital asset exchange, broker, and custodian. The partnership has seen them launch a money market fund from the UK asset manager abrdn in a tokenized form on the XRP Ledger (XRPL).
In its announcement, Ripple stated that,
“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, further establishing it as one of the leading blockchains for real-world asset (RWA) tokenization and institutional decentralized finance (DeFi).”
Abrdn Senior Investment Manager Duncan Moir added that,
"Real benefits are to be had from leveraging the efficiency of moving the end-to-end investment and cash settlement process on-chain.”
Tokenized money market funds are becoming popular in the cryptocurrency space. Earlier this year, Archax launched the BlackRock ICS US Treasury money market fund1 (MMF) on the Hedera blockchain.
In August, Franklin Templeton launched its tokenized money market fund on the Avalanche blockchain. The Franklin Templeton OnChain U.S. Government Money Fund (FOBXX) is the first and only U.S.-registered mutual fund to leverage a public blockchain as the system of record to process transactions and record share ownership.
