Ripple is set to invest $5 million in tokens on Abrdn’s Lux fund, marking a significant step in expanding its real-world asset (RWA) portfolio on the XRP Ledger (XRPL). This investment is part of Ripple’s broader strategy to integrate real-world assets into the XRPL ecosystem.
XRP outperformed bitcoin (BTC) and other major cryptocurrencies over the past 24 hours, fueled by the announcement of a groundbreaking collaboration between regulated crypto broker Archax, Ripple Labs, and Abrdn. Archax introduced the first-ever money market fund on the XRP Ledger, offering Abrdn’s U.S. dollar Liquidity Fund (Lux) in tokenized form.
As part of this collaboration, Ripple will allocate $5 million worth of XRP into Abrdn’s Lux fund, marking a pivotal moment in the tokenization of real-world assets on the XRP Ledger. Following the announcement, XRP saw a notable 6% increase, peaking at $1.49 before experiencing a slight pullback amid a broader market dip. Over the past week, XRP has risen by 27%, more than doubling in value over the last two weeks, driven by a series of positive developments.
Real-world assets (RWAs) refer to tangible or financial assets such as real estate, commodities, and bonds that exist outside the digital realm but can now be represented as tokens on a blockchain. This tokenization process allows for fractional ownership, enhanced liquidity, and simplified transfers of traditionally illiquid assets.
A money market involves the trading of short-term, high-quality debt instruments like Treasury bills, commercial paper, and certificates of deposit, typically used by large institutions to manage short-term cash needs.
Archax has been using Ripple’s digital asset custody since 2022, and the Lux fund currently manages over $3.8 billion in assets. The launch of the tokenized money market fund on XRPL further accelerates the growth of tokenized real-world assets, a sector considered by many to be a major growth opportunity in the crypto space.
According to a report from global consulting firm McKinsey & Company, the market for tokenized assets could reach $4 trillion by 2030 in an optimistic scenario. Meanwhile, forecasts from Boston Consulting Group and 21Shares predict that tokenized assets could surpass $10 trillion by the end of the decade.
