Archax to launch crypto trading against tokenized money market funds
“These new pairs, which will leverage our recently announced tokenized MMF instruments, provide a regulated, institutional-grade ‘currency’ which can then be used to trade cryptocurrencies directly – without the need to convert funds to fiat currencies or stablecoins first. In addition to the benefit of the protection you get whilst holding funds in these regulated MMFs, holders also earn a yield.”
Archax, a Financial Conduct Authority (FCA)-regulated digital asset exchange, broker, and custodian, announced today it is launching trading pairs that allow professional clients to trade leading cryptocurrencies directly against tokenized money market funds (MMFs).
The move marks a significant departure from traditional trading pairs in cryptocurrencies, which often require conversion into fiat currencies or stablecoins.
A regulated, institutional-grade ‘currency’ which can then be used to trade cryptocurrencies directly
Historically, trading in the cryptocurrency space has involved the use of fiat currencies like USD, or stablecoins, exposing traders to unregulated instruments, zero interest-earning potential, and counterparty risks. Archax aims to disrupt this norm by offering an alternative means of trading crypto assets.
Graham Rodford, CEO and co-founder of Archax, states: “The problems that crypto markets have experienced over the last 18 months highlight the need for as much regulated cover as possible when trading, and the banking crisis earlier this year means minimising counterparty risk is hugely important too. These new pairs, which will leverage our recently announced tokenized MMF instruments, provide a regulated, institutional-grade ‘currency’ which can then be used to trade cryptocurrencies directly – without the need to convert funds to fiat currencies or stablecoins first. In addition to the benefit of the protection you get whilst holding funds in these regulated MMFs, holders also earn a yield.”
Tokenized MMFs as a ‘Currency’
These novel crypto/MMF pairs will be introduced on the Archax exchange, covering an array of major cryptocurrencies. Tokenized MMFs will not only serve as an alternative to fiat and stablecoins but will also be deployed for trading against other regulated digital and traditional assets on Archax.
“We are currently finalizing plans for these new trading pairs, given the novel nature of this approach. We will make them available once complete,” concludes Rodford.
Despite Archax’s FCA-regulated status, clients are cautioned that the cryptoasset market remains unregulated and is not under the purview of the Financial Services Compensation Scheme nor actively supervised by the FCA.
The initiative by Archax promises to bring an enhanced layer of regulatory cover and financial security to the high-stakes world of cryptocurrency trading.
By integrating tokenized money market funds as trading pairs, Archax potentially offers investors the safety of a regulated instrument while enabling direct trading with unregulated cryptocurrencies—potentially setting a new industry standard for risk mitigation and investor protection.
