Abrdn and Ripple Tokenize £3.8 Billion US Dollar Liquidity Fund on the XRP Ledger

This is the first tokenised money market fund on the XRPL, combining real-world asset tokenisation and institutional DeFi (decentralised finance).

Cryptocurrency news: Ripple launches tokenised version of abrdn’s US Dollar Liquidity Fund on XRP Ledger科技 Ripple has announced the launch of a tokenised version of abrdn’s £3.8 billion (AU$7.3 billion) US Dollar Liquidity Fund on the XRP Ledger (XRPL).

This marks the first tokenised money market fund on the XRPL, merging real-world asset tokenisation with institutional DeFi (decentralised finance). The collaboration aims to enhance cost efficiency and streamline settlement in capital markets using blockchain technology.

Money market funds are a type of mutual fund that invests in highly liquid, short-term instruments, such as government bonds, treasury bills, and commercial paper. These funds give investors exposure to high liquidity with a very low level of risk, making them a popular choice for cash management or a temporary store of value.

The tokenisation of these money market funds refers to the process of converting the fund shares into digital tokens on a blockchain. This process aims to leverage the benefits of blockchain technology – such as increased liquidity, transparency, and accessibility – while still offering the stability and low-risk profile of traditional money market funds.

Tokenisation Has Enormous Transformative Potential As of now, tokenisation of money market funds is still in the early stages, with a few entities experimenting with the concept. This move by Ripple and abrdn is set to amplify the conversation around this topic.

Duncan Moir, Senior Investment Manager, abrdn, spoke to what he called the “next evolution of financial market infrastructure”, which is poised to gain traction through wider adoption of digital assets:

“This collaboration with Ripple and Archax to launch the first tokenised money market fund on the XRPL is a significant step in that direction. By combining the strengths of traditional finance with the innovative capabilities of blockchain, we aim to enhance the efficiency, transparency, and accessibility of capital markets.”

Markus Infanger, Senior Vice President, RippleX, also weighed in, saying that collaboration between abrdn and the XRPL has significant potential and could “enhance operational efficiencies, while further reinforcing the XRPL as one of the leading blockchains for real-world asset tokenization”.