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Ripple is set to expand its ecosystem with the introduction of new tokenized funds, marking a significant step forward in the tokenization of real-world assets.

Archax, a U.K.-based exchange, broker, and custodian for digital assets, today announced the addition of State Street, Fidelity International and Legal & General Investment Management (LGIM) funds to its portfolio of tokenized real-world assets (RWAs). The tokenized funds will initially be available on Hedera, Ripple and Arbitrum, an announcement made by Archax on X reads.

This will initially provide tokenized access to certain State Street Global Advisors, Fidelity International and LGIM money-market funds (MMFs) through beneficial ownership tokens, minted and offered by Archax, representing the holdings of clients of Archax in such funds. This might be expanded to include other fund offerings in due course.

The Irish-domiciled State Street USD/GBP/EUR Liquidity LVNAV Funds, the Fidelity ILF USD/Sterling/Euro Funds and the LGIM Sterling/USD/Euro Liquidity Funds are the first funds to be listed on the Archax platform in token form.

Archax will issue beneficial ownership tokens, representing Archax clients' holdings in such funds, with the tokens first available on Hedera Hashgraph, XRP ledger (XRPL) and Arbitrum.

Ripple making strides in real-world asset tokenization

In June of this year, Ripple and Archax announced an extension of their existing collaboration, which is expected to bring hundreds of millions of dollars in tokenized real-world assets (RWAs) onto the XRP Ledger (XRPL) over the next year. This aims to establish XRPL as one of the leading blockchains for RWA tokenization.

Archax enables financial institutions to tokenize their financial RWAs, and as a result of this partnership, financial institutions will be able to tokenize their RWAs using XRPL, opening up multiple downstream use cases for these assets.

The arrangement reflects an expansion of Ripple's collaboration with Archax, which began in 2022 when Archax partnered with Metaco to provide digital asset custody services to its clients. Ripple acquired Metaco in the middle of 2023.