As a seasoned researcher with a keen eye for technological advancements and their potential impact on the financial landscape, I find the recent move by Ripple to tokenize abrdn’s US dollar Liquidity Fund on the XRP Ledger nothing short of intriguing. With over three decades of experience in the industry, I’ve witnessed the evolution of traditional finance, and this development marks another significant milestone in the digital transformation of our economic systems.
Financial services company Ripple unveiled plans to introduce the initial tokenized money market fund on their XRP Ledger platform. The fund, managed by asset manager abrdn, holds a value of $4.77 billion (approximately 3.8 billion British pounds) in US dollars through their US Dollar Liquidity Fund.
The opportunity arose due to Ripple’s collaboration with Archax, a UK-based cryptocurrency exchange, broker, and custodian that is regulated by the Financial Conduct Authority, enabling access to Aberdeen Standard Investments’ money market fund.
Translating that into simpler and more natural language: Abrdn’s $4.77 billion money market fund has been tokenized on the XRP Ledger, according to Ripple, which shows how real-world assets are increasingly being transferred onto blockchain platforms to take advantage of operational cost savings and faster settlement times.
Duncan Moir, a senior investment manager at Abrdn, stated that significant advantages can be gained by utilizing the efficiency of transferring the entire investment and cash settlement process onto a blockchain platform.
Through the Archax tokenization platform, only accredited or professional investors will be granted access to abrdn’s money market fund on the XRP Ledger (XRPL), as announced by Ripple.
Ripple will also allocate $5 million into tokens on abrdn’s US dollar Liquidity Fund.
According to Boston Consulting Group’s projections, the market we’re aiming for could be worth as much as $16 trillion by 2030. Ripple is working on its RWA strategies to seize a larger share of this potential market.
Approximately $1 billion of tokenized money market funds are managed collectively, with the BlackRock USD Institutional Digital Liquidity Fund holding the largest share at approximately $443.9 million, as indicated by data from Dune Analytics and provided by asset manager 21Shares.
According to Archax’s CEO, Graham Rodford, there’s a noticeable surge of energy behind the concept of tokenizing real-world assets.
In the realm of Real-World Asset (RWA) space, Ethereum and Stellar are Ripple’s main rivals, having tokenized a combined total of approximately $3.07 billion and $386.2 million in RWA assets, as per data from Dune Analytics provided by 21Shares.
Among various risk-weighted assets, excluding fiat-backed stablecoins, government securities and commodities hold the highest tokenization amounts, with government securities accounting for approximately $2.28 billion and commodities for around $1.14 billion.
Over the past week, Ripple’s XRP (XRP) token has been among the top gainers in the market, climbing a significant 27.9% to reach $1.43.
Read More
- The Masked Singer Christmas special line-up – who are the characters?
- CRV PREDICTION. CRV cryptocurrency
- CTK PREDICTION. CTK cryptocurrency
- ZIG PREDICTION. ZIG cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- AGI PREDICTION. AGI cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- BONK trading volume crashed 73% – PEPE, WIF, FLOKI next?
2024-11-26 02:43