Ripple’s XRP Ledger Leads Institutional RWA Tokenization With New Partnerships

• Ripple has partnered with Archax Exchange and abrdn plc to expand RWA tokenization.
• Blockchain platforms make the financial market transparent, efficient, and accessible.
• Ripple has allocated $5 million into the tokenized abrdn fund.

Ripple has partnered with Archax Exchange and abrdn plc to expand its real-world assets (RWA) tokenization implementation to the mainstream. In a post on X, the Ripple Developer said the project wants to increase its $1 billion money funds market to $16 billion by 2030.

Through a Medium post, the Ripple Dev explained that tokenization on blockchain platforms like the XRP Ledger (XRPL) increases transparency, efficiency, and accessibility in the financial market. The Dev said partnerships, including those with Archax and abrdn, highlight the XRPL’s growing role in tokenization and make it a leader in institutional DeFi.

Archax CEO Graham Rodford noted that his exchange is a regulated custodian in the UK. He said that the partnership would enable the exchange to create a token for anything it can hold. Rodford’s statement highlighted the partnership’s potential to revolutionize the mainstream asset management industry.

Ripple’s Investment and Industry Recognition

In the meantime, Ripple has allocated $5 million into the tokenized abrdn fund, signaling growing confidence in the XRPL as a platform for RWA tokenization. Meanwhile, renowned global management consulting firm McKinsey considers Ripple’s partnership with Archax and abrdn a highlight of the growing momentum of blockchain-based solutions in traditional finance.

Read also: Ripple Custody Backs XRPL Tokenization Amid Market Struggles

Rodford said his firm has around 120 existing funds from some of the leading asset managers on its platform. He thinks every asset will be on the blockchain in the future, which is why his company is partnering with Ripple to put the assets on the XRPL.

Duncan Moir, Senior Investment Manager at abrdn, said the XRPL is an established venue for putting tokenized RWAs in place. Moir said the blockchain is a good fit because of its institutional-grade functionality, cost-efficiency, and built-in compliance capabilities. The investment expert said the real benefits are the efficiency of putting the end-to-end investment and cash settlement process on-chain.

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