Archax utilizes Hedera Hashgraph DLT to tokenize interest in abrdn’s money market fund
“It is exciting to see a tangible application of Archax’s tokenization engine working with Hedera and it paves the way for us to look at creating other digital, blockchain-based token investment solutions.”
Archax has announced it has created a tokenized representation of its interests in the Aberdeen Standard Liquidity Fund (Lux) – Sterling Fund, abrdn’s multi-billion pound money market fund.
The FCA regulated digital asset exchange, broker and custodian leveraged the Hedera Hashgraph DLT, of which abrdn is a governing council member, to proceed with the tokenization.
abrdn was among a number of investors of Archax’s $28.5m Series A fundraising round last year. The tokenization represents the first step towards a number of traditional, real-world tokenization projects that the parties are working on together.
Paving the way for other digital, blockchain-based token investment solutions
Russell Barlow, Global Head of Alternatives at abrdn, commented: “We made the investment into Archax because we see the future for financial markets lies with leveraging new technologies, such as Web 3.0 and DLT. It is exciting to see a tangible application of Archax’s tokenization engine working with Hedera and it paves the way for us to look at creating other digital, blockchain-based token investment solutions.”
Graham Rodford, CEO and co-founder of Archax, said: “Creating a token representation of our interest in such a traditional and institutional-grade vehicle opens up all sorts of interesting opportunities in the digital asset space. We are exploring other applications with abrdn to improve access to investment products in this space in the near future.”
“We are excited to be working on this with abrdn, and we also have projects underway with a number of other traditional financial institutions to leverage the opportunities that Web 3.0 and tokenization present”.
Archax to tokenize equities, treasuries, carbon credits, more
It was in late March that Archax launched its tokenization engine to enable the creation of tokens backed by any regulated or unregulated real-world or traditional asset. The engine allows Archax to roll out token representations of existing assets, starting with blue-chip UK traditional equities and funds to trade alongside new cryptoassets.
The Archax institutional, digital asset ecosystem facilitates fundraising, tokenization, custody, junior market, and full-blown exchange. It also covers a broad range of assets, from cryptocurrencies to tokeniszd assets to digital securities to NFTs.
The company has recently rolled out its regulated digital asset custodian and its primary raise platform. Now, it is creating tokens backed by top listed traditional equities which they plan to trade on their exchange.
After tokenizing traditional equities, Archax plans to issue tokens of treasury instruments, carbon credits, and a number of tokenized fund projects, as well as other innovative cryptoasset instruments resulting in a multi-asset venue.
24×7 trading, streamlined corporate actions, and new forms of DeFi collateral
Benefits and efficiencies of tokenization on Archax include 24×7 trading, streamlined corporate actions as well as the potential for new forms of DeFi collateral.
Archax added that tokenizing assets like funds can open up new potential investor bases and create secondary markets for trading outside of redemption cycles.
These traditional asset-backed tokens also provide interesting new exposure for firms already operating in the crypto space, offering access to less volatile instruments within those digital rails, as well as leveraging cross-collateralization opportunities in the Web 3.0 DeFi space – such as borrowing and lending.
