XRP Surges As Archax Launches Money Market Fund On XRP Ledger

According to CoinDesk, XRP has outperformed bitcoin (BTC) and other major cryptocurrencies in the past 24 hours following the launch of a money market fund on the XRP Ledger by regulated crypto broker and custodian Archax. This initiative marks a first for the network and involves collaboration with Ripple Labs and Abrdn. Archax has introduced Abrdn’s U.S. dollar Liquidity Fund (Lux) in a tokenized form on the XRP Ledger (XRPL). Ripple has committed $5 million worth of tokens into Abrdn’s Lux fund, which is part of a broader allocation to real-world assets (RWAs) on the XRPL. The price of XRP surged by 6%, reaching a high of $1.49 shortly after the announcement, although it later experienced a decline amid a market-wide drop. Over the past week, XRP has risen by 27% and has more than doubled in value over the last two weeks, driven by several positive developments. Real-world assets (RWAs) refer to tangible or financial assets such as real estate, commodities, or bonds that exist outside the digital realm but can be represented as tokens on a blockchain. This tokenization process facilitates fractional ownership, enhances liquidity, and simplifies the transfer of these assets. A money market involves the trading of short-term, high-quality debt instruments like Treasury bills, commercial paper, and certificates of deposit, primarily used by large institutions to manage their short-term cash needs. Archax has been utilizing Ripple’s digital assets custody services since 2022. The Lux fund currently manages over $3.8 billion in assets, according to a release. The introduction of the tokenized money market fund on the XRPL is seen as a significant step forward in the growth of real-world asset tokenization, a sector that is gaining considerable attention in the crypto industry. A report by global consulting firm McKinsey & Company in July projected that the tokenized asset market could reach $4 trillion in an optimistic scenario by 2030. Additionally, Boston Consulting Group and 21Shares have forecasted that the market for tokenized assets could exceed $10 trillion by the end of the decade, as previously reported by CoinDesk.