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Enabling the Transition of Stablecoin Assets into Tokenised, Regulated, Yield-bearing Holdings

Archax, a digital asset exchange, broker, and custodian regulated by the Financial Conduct Authority (FCA), has announced the launch of its Stablecoin Yield Service. This service allows individuals holding assets in stablecoins to convert them into yield-generating instruments, including regulated Money Market Funds (MMFs) that are also available in tokenised form.

In the current market environment where interest rates are high, investors holding passive stablecoins may be foregoing potential yields by not utilizing those assets, particularly as stablecoins often serve as a default option for risk-averse crypto traders. Many investors, however, prefer to maintain immediate access to their assets, making traditional interest-bearing bank accounts less attractive.

Archax offers a range of MMFs from reputable asset managers, providing users with a seamless way to transfer their stablecoin holdings into regulated, yield-bearing instruments. This solution is appealing as it mitigates single counterparty risk associated with banks and stablecoin issuers.

Graham Rodford, CEO and co-founder of Archax, comments: 

“These yield-bearing instruments provide a compelling alternative from the current stablecoin asset holding strategies. Once tokenised, they can serve as a form of ‘currency’ for transfers or as collateral for borrowing and lending. This is a clear demonstration of how blockchain and tokenisation are set to transform and modernise traditional financial market structures.” 

For professional investors only. Capital at risk.

Photo by Hieu Vu Minh on Unsplash

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