Archax Tokenizes Real-World Assets on Hedera, XDC, XRPL, Algorand, and More

The financial world is undergoing a transformative shift, driven by blockchain technology and the rise of tokenization. By converting real-world assets into digital tokens on a blockchain, tokenization unlocks liquidity, enables fractional ownership, and increases efficiency. This innovation is creating new opportunities for investors and institutions, reshaping how assets are managed and traded. At the forefront of this evolution is Archax, a UK-based digital asset platform and the first Financial Conduct Authority (FCA)-regulated exchange, broker, and custodian in the UK. With its focus on compliance and trust, Archax bridges the gap between traditional finance and blockchain technology, offering institutional investors a secure gateway to the tokenized economy.

Through strategic partnerships with blockchain leaders like Ripple, Hedera, Algorand, and XDC, Archax has enabled the tokenization of diverse assets, including equities, bonds, and money market funds. These collaborations, combined with Archax’s regulatory framework and innovative platform, empower institutions to embrace the benefits of tokenization while maintaining security and transparency.

Background on Archax

Founded in London in 2018, Archax bridges traditional finance and blockchain technology, focusing on institutional investors. Its founders, with experience at Barclays and HSBC, envisioned a platform offering regulated access to digital and tokenized assets. In 2020, Archax became the first UK-based digital asset exchange, broker, and custodian to receive Financial Conduct Authority (FCA) approval, ensuring compliance with stringent KYC and AML standards and earning trust among institutional clients.

Archax provides a regulated exchange for trading tokenized assets, brokerage services, and secure custody solutions. Its tokenization engine allows asset owners to digitize traditional assets, enabling 24/7 global trading and increased liquidity. Backed by a $28.5 million Series A funding round led by abrdn in 2022, Archax has expanded its tokenized offerings and strengthened its position in the market.

The platform integrates with blockchain networks like Ripple, Hedera, Algorand, and XDC to provide interoperability, instant settlement, and advanced features such as staking. Committed to security, Archax employs multi-signature wallets, cold storage, and encryption to safeguard client assets.

Archax’s Integrations: Strategic Blockchain Partnerships

Archax, the UK's first FCA-regulated digital securities exchange, broker, and custodian, has strategically partnered with leading blockchain platforms—Ripple, Hedera, Algorand, and XDC Network—to advance the tokenization of real-world assets (RWAs). These collaborations aim to integrate traditional financial assets into blockchain ecosystems, enhancing liquidity, efficiency, and accessibility for institutional investors.

Hedera

In June of 2023, Archax announced the creation of a tokenised representation of its interests in the Aberdeen Standard Liquidity Fund (Lux) – Sterling Fund, Abrdn’s flagship £multi-billion money market fund, leveraging the Hedera Hashgraph DLT of which Abrdn is a governing council member.

In December 2023, Archax expanded its collaboration with The HBAR Foundation to enhance support for HBAR staking and pursue additional tokenization projects. This partnership enabled Archax to integrate the Hedera network and Hedera Token Service (HTS) into its offerings, allowing clients holding HBAR in custody with Archax to earn yields on their assets through staking.

By April 2024, Archax further leveraged Hedera's technology to tokenize shares of the BlackRock ICS US Treasury money market fund. This initiative provided institutional investors with seamless access to tokenized money market funds, utilizing Hedera's high-performance and scalable network to facilitate efficient transactions.

https://genfinity.io/2024/04/24/revolutionizing-finance-insights-into-hederas-latest-developments-april-twenty-twenty-four/

Ripple

In June 2024, Archax expanded its partnership with Ripple to bring hundreds of millions of dollars in tokenized RWAs onto the XRP Ledger (XRPL). This initiative leverages XRPL's robust infrastructure to facilitate the seamless transfer and settlement of tokenized assets, providing institutional investors with efficient access to digital securities.

By November 2024, Archax, in collaboration with Ripple, enabled access to abrdn's £4.8 billion US Dollar Liquidity Fund in tokenized form on the XRPL. This development marked the first tokenized money market fund on the XRPL, underscoring its capability to support institutional decentralized finance (DeFi) applications.

Algorand

In June 2024, Archax collaborated with the Algorand Foundation and Quantoz Payments to tokenize abrdn's €3.8 billion Euro Money Market Fund on the Algorand blockchain. This partnership utilized Quantoz's EURD electronic money token to enable efficient and secure transactions, leveraging Algorand's native "no-code" atomic settlement feature for instant execution of interdependent transactions.

This collaboration demonstrated the potential of combining tokenized assets with on-chain digital money, showcasing the feasibility of conducting end-to-end investment and cash settlement processes entirely on-chain. It marked a significant step toward integrating traditional financial products into blockchain ecosystems, providing investors with improved transparency and efficiency.

https://genfinity.io/2024/06/27/archax-algorand-quantoz-tokenized-fund/

XDC Network

In December 2024, Archax announced a partnership with XDC Network, an enterprise-grade Layer-1 EVM-compatible blockchain. This collaboration aims to enable financial institutions to access tokenized RWAs cost-effectively and efficiently, broadening the adoption of digital assets and revolutionizing global financial markets.

The partnership combines Archax's regulated digital asset platform with XDC Network's scalable and secure blockchain solutions, facilitating the seamless integration of RWAs into the digital asset ecosystem. This alliance is poised to drive innovation and growth in the tokenization space, offering institutional investors new opportunities to engage with digital assets.

https://twitter.com/XDCFoundation/status/1864735725767283021

Through these strategic partnerships, Archax is at the forefront of integrating traditional financial assets with blockchain technology, paving the way for a more inclusive and efficient financial ecosystem.

Archax’s Contribution to Tokenization Growth

Archax has significantly advanced the growth of tokenization by integrating traditional financial assets into blockchain ecosystems, thereby enhancing market efficiency and accessibility. Through strategic partnerships and innovative initiatives, Archax has established itself as a leader in the tokenization of real-world assets (RWAs).

Pioneering Tokenization Initiatives

Archax has been instrumental in advancing the tokenization of real-world assets (RWAs), integrating traditional financial instruments into blockchain ecosystems to enhance market efficiency and accessibility. A significant milestone in this endeavor is Archax's role as a founding member of the RWA Foundation, an organization dedicated to promoting the adoption and integration of tokenized RWAs across the financial industry.

In March 2023, Archax launched its real-world asset tokenization engine, enabling the creation of tokens backed by regulated or unregulated assets. This platform facilitates the digitization of various asset classes, including blue-chip UK equities and funds, allowing them to be traded alongside new crypto assets. By providing a regulated environment for token issuance and trading, Archax has opened new avenues for asset liquidity and investor participation.

https://twitter.com/ArchaxEx/status/1862143138061566162

As a founding member of the RWA Foundation, Archax collaborates with other industry leaders to establish standards and best practices for the tokenization of RWAs. This collective effort aims to create a robust framework that ensures the seamless integration of tokenized assets into existing financial systems, fostering greater trust and adoption among institutional investors.

Through these pioneering initiatives and collaborative efforts, Archax continues to drive the growth of tokenization, offering innovative solutions that bridge the gap between traditional finance and the burgeoning digital asset ecosystem.

Collaborations with Major Asset Managers

Archax has partnered with leading asset management firms to tokenize substantial financial products. Notably, in November 2024, Archax, in collaboration with Ripple, launched the first tokenized money market fund on the XRP Ledger (XRPL), providing tokenized access to abrdn's $4.8 billion U.S. dollar Liquidity Fund. This initiative exemplifies the integration of traditional financial products into blockchain platforms, enhancing operational efficiencies and broadening investor access.

Expanding Tokenized Offerings

Archax has broadened its range of tokenized assets by incorporating money market funds from prominent financial institutions such as State Street, Fidelity International, and Legal & General Investment Management. These tokenized assets are available on various blockchain networks, including Hedera Hashgraph, XRPL, and Arbitrum, providing investors with diversified options and improved liquidity.

https://twitter.com/ArchaxEx/status/1859168641628942644

Strategic Partnerships for Distribution

To enhance the distribution of tokenized RWAs across Europe, Archax has formed strategic partnerships with platforms like Assetera. This collaboration facilitates access to digital assets, including funds and structured products listed on Archax, enabling both primary sales and secondary market trading on the Assetera platform. Such alliances are crucial in bridging traditional finance with digital asset markets, expanding the reach of tokenized products to a broader investor base.

Industry Recognition and Impact

Archax's efforts in tokenization have garnered industry recognition, positioning the company as a pioneer in integrating traditional financial assets with blockchain technology. By providing a regulated platform for the issuance and trading of tokenized assets, Archax has played a pivotal role in advancing the adoption of digital securities, contributing to the evolution of financial markets toward greater efficiency and inclusivity.

Through these initiatives, Archax continues to drive the growth of tokenization, offering innovative solutions that bridge the gap between traditional finance and the burgeoning digital asset ecosystem.

A Forward-Looking Vision: Archax and the Future of Finance

Archax stands at the forefront of the financial revolution, redefining how assets are created, traded, and managed in the digital age. By combining blockchain technology with a strong commitment to regulatory compliance, the company is bridging the divide between traditional markets and emerging digital ecosystems. Its strategic partnerships with Ripple, Hedera, Algorand, and XDC, along with groundbreaking innovations like its tokenization engine, highlight its mission to transform finance.

The future of tokenization holds immense potential. Archax’s efforts to tokenize new asset classes—such as real estate, corporate bonds, and commodities—promise to unlock liquidity and open new investment opportunities. Emerging use cases like fractional ownership, automated corporate actions, and blockchain-based settlement systems will further enhance efficiency and accessibility.

As blockchain technology evolves, Archax is well-positioned to adapt and lead. Its dedication to ESG principles, including sustainability through eco-friendly blockchain networks, aligns with the growing emphasis on responsible investing. Additionally, the expansion of its global footprint and collaborations with financial institutions demonstrate its commitment to scaling tokenization worldwide.

Archax is more than a platform; it is a gateway to the future of finance. By setting the standard for regulated digital asset trading and tokenization, Archax ensures that institutional investors can confidently navigate this transformative landscape. The path ahead is clear: innovation, inclusivity, and integration will continue to drive Archax’s journey toward reshaping global financial markets.

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