Assetera, Archax Partner to Distribute RWAs in Europe
The collaboration highlights the growing trend of tokenizing traditional assets
October 8, 2024 01:57 PM
Reading time: 1 minute, 19 seconds
TL;DR Assetera and UK-based Archax have partnered to distribute tokenized real-world assets in Europe. This deal provides investors access to digital assets like funds and structured products.
Assetera and Archax Join Forces
Assetera, a regulated digital securities trading venue, has forged a strategic partnership with Archax. Archax is a UK-based digital exchange renowned for its innovative approach to tokenization.
Backed by asset manager Abrdn, Archax has been at the forefront of integrating blockchain technology into traditional finance.
Archax's Blockchain Innovations
In 2023, Archax made waves by offering tokenized investments in Abrdn's money market funds. Utilizing cutting-edge technology from Hedera Hashgraph, Archax launched its first blockchain-based investment.
The tokenization of the Lux Sterling money market fund marked a significant milestone in the evolution of digital securities.
Expanding Investor Access
The partnership between Assetera and Archax aims to broaden access to digital assets. Investors will gain exposure to Abrdn's tokenized money-market funds. Archax's platform will list these innovative products, paving the way for additional funds from other asset managers.
"Tokenization represents a once-in-a-generation opportunity for the financial services industry," emphasized Thomas Labenbacher, CEO and founder of Assetera.
The Tokenization Revolution
The financial world is witnessing a surge in the tokenization of traditional assets. A recent Moody's report highlights the rapid growth in the value of tokenized funds, which skyrocketed from $100 million in early 2023 to around $800 million in 2024.
This boom is driven mainly by the tokenization of U.S. treasuries, underscoring the transformative potential of blockchain.
Looking Ahead
As the tokenization trend continues to gain momentum, collaborations like those between Assetera and Archax will be crucial.
They enhance investor access and reinforce the importance of leveraging robust and reliable technology. The financial landscape is evolving, and these partnerships are at the helm of this transformation.