XRP Holds Strong as Archax Unveils Tokenized Money Market Fund on XRP Ledger
2024-11-26

XRP outperformed bitcoin BTCUSD and other major tokens in the past 24 hours as regulated crypto broker and custodian Archax unveiled a money market fund on the XRP Ledger, a first for the network, in collaboration with closely related Ripple Labs and Abrdn.Archax has provided access to Abrdn’s U.S. dollar Liquidity Fund (Lux) in tokenized form on XRPL. Ripple will allocate $5 million worth of tokens into Abrdn’s Lux fund, part of a larger allocation to real-world assets (RWAs) on the XRPL.XRP price jumped 6%, touching a high of $1.49 in the hours following the release, before paring gains in a market-wide drop. The token is up 27% over the past week and more than has more than doubled in two weeks on several positive catalysts.Real World Assets (RWAs) are tangible or financial assets like real estate, commodities, or bonds that exist outside of the digital realm but can be represented as tokens on a blockchain. This process, known as tokenization, allows for fractional ownership, increased liquidity, and easier transfer of these assets.A money market involves trading short-term, high-quality debt instruments like Treasury bills, commercial paper, and certificates of deposit. It's where large institutions manage their short-term cash needs.Archax has been using Ripple’s digital assets custody since 2022. Lux has over $3.8 billion in assets under management, per a release.The launch of the tokenized money market fund on the XRPL is a further boost to the growth of real-world asset tokenization, a sector that some eye as one of the hottest in crypto.In a July report, global consulting firm McKinsey & Company expects the tokenized asset market to reach $4 trillion in an optimistic scenario by 2030. Boston Consulting Group and 21Shares have forecasted over $10 trillion of tokenized assets by the decade's end in their optimistic scenarios, as CoinDesk previously reported.