The UK-based Asset Management Firm Aviva Investors has launched its first-ever tokenized money market fund The XRP Ledger will be used to manage the US Dollar (USD) Liquidity Fund, a partnership between Ripple and the MMF share class. Central Bank of Ireland has approved the Undertakings of Collective Investments in Transferable Securities Fund (UCITS). This fund is part of the money market. Other share classes under asset management total $1.23 billion.
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Aviva Investors Joins the Tokenized Industry for Funds
Aviva Investors is reported to have invested $1.34million into the tokenized XRP Ledger. Aviva Investors referred to the partnership as “a scalable foundation for future innovation in fund distribution and market infrastructure.” Ripple has a brand new achievement, with the XRP Ledger making its way into the financial industry. It can help XRP to rise in the charts, and its value will increase with more use cases.
“Each Digital Token represents, and is at all times directly linked to, a corresponding traditional share of the Fund and cannot exist independently of such traditional share,” Read the announcement. Since the tokens can’t be traded, there are fewer concerns that the two will get out of sync. The shares of the XRP Ledger cannot be redeemed, minted, nor issued. Tokenized MMFs will also be used for collateral mobility.
XRP Ledger is used by several financial institutions, including banks and investment firms. Due to the fact that tokenized assets cannot be tampered with, they are considered secure. Once entered into the ledger, information cannot be altered or deleted. The blockchain is therefore a more safe and secure system of ledger compared with the traditional one. Digital tokens have only one drawback: they cannot be reversed if an error or fraud occurs. In blockchain, everything is permanent and each transaction is final.
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Source: watcher.guru
