RCS - Archax Holdings Ltd - Archax Increases Tokenised MMF Offerings

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23/04/2024 16:45

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RNS Number : 7430L  Archax Holdings Ltd  23 April 2024

 

 

Archax Increases Tokenised Money Market Fund Offerings

Executes first $multi-million transaction in partnership with Ownera

 

 

London, UK - 23 April, 2024 - Archax, the first FCA regulated digital asset
exchange, broker and custodian, today announced that it is expanding the range
of fund shares it offers in tokenised form with the provision of the BlackRock
ICS US Treasury money market fund(1) (MMF). This builds on its launch of
tokenised access to abrdn's MMFs last year, which Archax has created on both
the Hedera and Ethereum blockchains.

 

This additional BlackRock MMF, along with existing offerings, are all
available directly on the Archax platform, as well as through connected
networks. The first transaction of tokenised shares of the BlackRock MMF,
which was also tokenised on Hedera, the open-source, proof-of-stake public
ledger, was completed across the Ownera FinP2P digital asset network.

 

In the current high interest-rate environment, putting cash, treasury and
stablecoin assets to work is more important than ever. MMFs are a useful
vehicle as they have the potential to provide institutional stability and
yield, due to their underlying investments in short-term debt products, and
reduce single bank or stablecoin provider counterparty risk. In addition,
through creating a secondary market for the tokenised instruments, Archax can
provide investors with the benefit of almost instantaneous transfer of MMF
shares throughout the day - an advantage which can also see the tokens being
used for collateral movement instead of just traditional
subscriptions/redemptions.

 

Graham Rodford, CEO and co-founder of Archax, comments: "Money market funds
from different asset managers can follow different underlying investment
theses - for example investing in short-term governmental debt issuances or
commercial short-term debt issuances. Consequently, it is important to have a
range of offerings available to cater to differing client needs. Adding more
funds into our portfolio of tokenised shares of MMF offerings expands the
flavours we have on offer and so allows us to serve a broader range of
potential clients."

 

"As well as MMF product breadth, product distribution is also vitally
important", continues Rodford. "And so we are pleased to be expanding our
partnership with Ownera to further leverage their FinP2P network for
distribution of tokenised shares in MMFs and to help facilitate our first
$multi-million trade on Hedera too."

 

Ami Ben David, CEO and co-founder of Ownera, adds: "Using a simple Ownera
Buy-Side Router, suitable banks of all sizes, wealth managers, asset managers,
broker-dealers, RIAs (registered investment advisors), and exchanges can route
transactions to the tokenized MMFs offered by Archax. This is another step
towards realising the vision we share with Archax and other partners across
the ecosystem, of a global institutional tokenized assets ecosystem with
market-wide access, distribution and liquidity."

 

With all the excitement in the marketplace around real-world-asset (RWA)
tokenisation, funds are certainly front and centre as a use case. MMFs are
particularly prominent too, as these provide benefits to and serve both the
Traditional Finance (TradFi) tokenised world as well as the pure crypto space.
 

 

Shayne Higdon, CEO of The HBAR Foundation, comments: "The addition of MMF
shares tokenised on Hedera, enabled by Archax, is a huge vote of confidence.
Hedera's unmatched speed, security, and low-cost infrastructure is ideally
suited for the institutional-grade tokenisation of real-world assets made
possible by Archax."

 

Capital at Risk. We offer our tokenised MMF shares to professional and
institutional clients only.

 

(1)A Money Market Fund (MMF) is not a guaranteed investment vehicle. An
investment in MMFs is different from an investment in deposits; the principal
invested in a MMF is capable of fluctuation and the risk of loss of the
principal is to be borne by the investor. The MMF does not rely on external
support for guaranteeing the liquidity of the MMF or stabilising the NAV per
share.

( )

 

 

About Archax

Archax is a global, regulated, digital asset exchange, brokerage and custodian
based in London. Founded by experts from the financial markets world and
backed by an accomplished advisory board, Archax offers a credible bridge
between the blockchain-centric crypto community and the traditional investment
space.

Archax is the first-ever firm to receive FCA regulation as a digital
securities exchange, custodian and brokerage. It was also the first firm to be
listed on the FCA's Cryptoasset Register as a VASP (Virtual Asset Service
Provider).

Archax has been designed specifically for institutional investors to trade in
all types of digital assets, from cryptocurrencies to digital securities. It
is built using existing, proven, resilient, scalable, high-performance
exchange infrastructure, hosted in top-tier datacentre space, and integrated
into the existing institutional trading workflow.

For more information, go to www.archax.com (http://www.archax.com) .

 

About Ownera

Ownera is a technology company delivering interoperability solutions to the
world of tokenized assets. Ownera's routers enable global distribution and
liquidity by connecting tokenized assets distributed by sell-side institutions
to buy-side demand. The routers facilitate the messaging, negotiation and
settlement of transactions between the counterparties and their various
regulated service providers including custodians, broker dealers, transfer
agents, cash providers, lenders and others. Ownera's routers implement the
open FinP2P protocol originally pioneered by the company. Ownera is backed by
strategic investors including J.P. Morgan, U.S. Bancorp, LRC Group, Draper
Goren Holm, tokentus Investment AG, Accomplice Blockchain, Polymorphic
Capital, The Ropart Group and Archax

For more information, go to www.ownera.io (http://www.ownera.io) .

 

About the HBAR Foundation

The HBAR Foundation supports the creation of Web3 communities built on the
Hedera network, by empowering and funding the builders developing these
communities. The Foundation's six funds - focused on the Crypto Economy,
Metaverse, Sustainability, Fintech, Privacy, and Female Founders - each
support communities within those areas, and the interconnectedness enables
applications to participate as part of a larger ecosystem.

The collective power of these funds enables entrepreneurs, developers, and
enterprises of all sizes to tackle some of the world's largest problems, and
create and control their own economies, all built on the Hedera public
network. Whether you're building something new or migrating an existing
EVM-based application and community, the HBAR Foundation is here to support
you. For additional information, please visit https://hbarfoundation.org
(https://hbarfoundation.org) .

 

 

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