Archax Announces Plans to Offer Tokenized Money Market Funds
Tokenization of real-world assets (RWAs) is gaining traction, with UK-regulated crypto exchange Archax planning to offer tokenized money market funds from major financial firms. This initiative involves partnerships with State Street Global Advisors, Fidelity International, and Legal & General Investment Management (LGIM), aiming to integrate traditional finance with blockchain technology.
Archax intends to provide investors with beneficial ownership tokens representing their holdings in these funds, initially available on Hedera Hashgraph, XRPL, and Arbitrum blockchains, with plans for future expansion to additional networks.
Archax Hops on a Growing Trend in Finance
Archax's move aligns with a broader industry trend toward tokenizing traditional financial assets. CEO Graham Rodford highlighted the increasing interest in tokenized assets, emphasizing the benefits of enhanced distribution and liquidity, as well as innovative use cases like collateral transfer.
This announcement follows Legal & General’s exploration into tokenization, with $1.5 trillion in assets under management. Other significant players, including BlackRock and Franklin Templeton, have also launched tokenized funds, indicating growing acceptance of blockchain in mainstream finance.
The ongoing tokenization efforts are transforming asset trading and management, blurring lines between traditional systems and decentralized technology as more legacy institutions adopt tokenization.
Additionally, Archax has agreed to acquire Spanish broker King & Shaxson Capital Markets (KSCM), pending approval from the Spanish regulator, further demonstrating its intent to expand its reach and offerings.