XRP Stays Firm as Archax Introduces Tokenized Money Market Fund on XRP Ledger

Ripple has announced a $5 million investment in tokenized assets via Abrdn’s Lux fund, marking a strategic move to bolster its real-world asset (RWA) portfolio on the XRP Ledger (XRPL). This development further cements Ripple’s role in the growing tokenization of traditional assets.

XRP surged 6% following the news, hitting a high of $1.49 before pulling back with the broader market. The recent increase in XRP’s price—up 27% in the past week and more than doubling in value over the past two weeks—follows a series of positive developments for the cryptocurrency.

The collaboration between Ripple, Archax, and Abrdn is groundbreaking, as it introduces a tokenized version of Abrdn’s U.S. dollar Liquidity Fund (Lux) on the XRP Ledger. Archax, a regulated crypto broker and custodian, provides the gateway for these tokenized funds, making them accessible on the XRPL. Ripple’s $5 million allocation into the Lux fund will help strengthen its foothold in the real-world asset market, which some consider a crucial growth area for the blockchain sector.

Real-world assets (RWAs), such as bonds, real estate, and commodities, are traditionally illiquid and outside the digital space but can now be represented as tokens on a blockchain. This tokenization offers fractional ownership, liquidity, and easier transferability of these physical assets.

Lux has been a key player in the tokenization space, with over $3.8 billion in assets under management. Since Ripple began using Archax’s digital asset custody services in 2022, this partnership has grown to facilitate the tokenization of a wider array of assets.

Experts predict tokenized real-world assets will become a massive industry. McKinsey & Company projects a $4 trillion tokenized asset market by 2030, while Boston Consulting Group and 21Shares have even more optimistic forecasts, expecting the sector to exceed $10 trillion by the decade’s end. Ripple’s latest investment aligns with these forecasts and supports the growing trend of tokenizing real-world assets within the crypto industry.