Digital Asset Exchange Archax Adds State Street, Fidelity and LGIM to Platform

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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November 20, 2024 06:37 EST

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Archax, the UK-based and FCA-regulated exchange, broker, and custodian for digital assets, said it is adding funds from State Street, Fidelity International, and LGIM to its tokenised real-world asset platform.

The exchange said it will mint and give beneficial ownership tokens that represent the holdings of its clients in these money-market funds.

Select Funds Made Available

At first the focus will be on providing tokenised representations of funds such as State Street’s USD/GBP/EUR Liquidity LVNAV Funds, Fidelity’s ILF USD/Sterling/Euro Funds, and LGIM’s Sterling/USD/Euro Liquidity Funds. Over time, Archax said it aims to expand its offerings to include additional fund options.

Archax is backed by asset manager Abrdn. In 2023, Archax first started to offer tokenized investments in Abrdn’s money market funds via their trading venue, using technology by Hedera Hashgraph. The firm first launched its first blockchain-based investment by tokenizing the Lux Sterling money market fund.

Tokenized RWAs Gain Momentum

“Tokenised real-world assets, and in particular funds, are really gaining momentum,” said Graham Rodford, CEO and co-founder of Archax, in a press release.

“The industry sees the path to additional distribution and liquidity that tokenisation brings, as well as the new innovative use cases like collateral transfer,” said Rodford.

Archax said its “beneficial ownership tokens” will initially be available on Hedera Hashgraph, XRPL, and Arbitrum. The firm is using these blockchains to provide access to tokenised RWAs.

As tokenisation gains traction, platforms like Archax are giving professional and institutional investors access to liquidity. The funds are available only to qualified investors in jurisdictions where they are registered.