Archax, a Ripple partner, recently announced the addition of State Street, Fidelity International, and Legal & General Investment Management (LGIM) funds to its tokenized real-world assets (RWA) offerings. These tokenized funds will be available on the XRP Ledger (XRPL), Hedera, and Arbitrum blockchains. As a result of this news, the price of XRP surged by 4% within hours of the announcement.
Archax is the first regulated RWA exchange in the UK and has listed State Street USD/GBP/EUR Liquidity LVNAV Funds, Fidelity ILF USD/Sterling/Euro Funds, and LGIM Sterling/USD/Euro Liquidity Funds as the first funds to be tokenized on its platform. These beneficial ownership tokens will be launched on various blockchains to provide additional distribution and liquidity through tokenization.
Tokenized real-world assets, especially funds, are gaining momentum in the industry according to Archax CEO Graham Rodford. He believes that tokenization offers new innovative use cases like collateral transfer and facilitates the distribution of assets. This move by Archax is expected to bring more financial institutions into the cryptocurrency space by tokenizing their RWAs on XRPL and other Layer-1 blockchains.
In response to the announcement, the price of XRP saw a 4% jump, currently trading at $1.14. Ripple had partnered with Archax earlier in June to bring tokenized real-world assets onto the XRP Ledger, aiming to establish XRPL as a leading blockchain for RWA tokenization. The partnership is expected to drive exponential growth as more financial institutions actively tokenize their assets on XRPL and other blockchains.
While XRP experienced significant price gains after the news, other tokens like HBAR and ARB did not witness a similar upsurge. HBAR price fell by 12% to $0.1264, and ARB price dropped by 2% to $0.693. Despite this, the focus remains on the growing trend of tokenizing real-world assets, especially funds, as it offers additional distribution channels and innovative use cases for collateral transfer.
The news of State Street, Fidelity, and LGIM funds being tokenized on Archax’s platform highlights the increasing adoption of tokenized RWAs in the industry. With the potential for additional distribution and liquidity through tokenization, more financial institutions are likely to explore this avenue in the future. As the trend continues to grow, XRPL and other blockchains are expected to play a key role in facilitating the tokenization of various real-world assets, driving innovation and growth in the cryptocurrency space.
