Archax, the UK-based, FCA-regulated exchange, broker and custodian for digital assets, has added State Street, Fidelity International and Legal & General Investment Management (LGIM) funds to the range of tokenised real-world assets (RWAs) that it offers. Starting initially with providing tokenised 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.
Providing digital representations of MMFs is proving to be a popular use case for tokenisation and blockchain technology, as it opens up a potential new audience for these types of yield-bearing products that historically have been challenging to access – such as holders of stablecoins or FinTech firms holding cash as treasury. Additionally, the MMF tokens also have the potential to be used as collateral, in the form of a yield-bearing “currency”, that can be used for payments between counterparties.
Graham Rodford, CEO and co-founder of Archax, comments: “Tokenised real-world assets, and in particular funds, are really gaining momentum. The industry sees the path to additional distribution and liquidity that tokenisation brings, as well as the new innovative use cases like collateral transfer. We are really pleased to be expanding our offerings by working with blue-chip industry leaders and are excited to be adding the State Street Global Advisors, Fidelity International and LGIM names to our growing list of partners.”
The first funds to be listed on the Archax platform in token form are 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. Archax will issue beneficial ownership tokens representing the holdings of clients of Archax in such funds and initially make these tokens available on Hedera Hashgraph, XRPL and Arbitrum.
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