Crypto Exchange Archax to Offer Tokenized Money Market Funds from State Street, Fidelity International and LGIM

As a seasoned crypto investor with a knack for spotting trends and opportunities, I find the recent move by Archax to integrate funds from renowned financial institutions like State Street, Fidelity International, and Legal & General Investment Management into their platform, nothing short of promising.

In simple terms, Archax, a UK-based crypto exchange overseen by regulators, has expanded its selection of digital assets representing real-world items, now including funds from State Street, Fidelity International, and Legal & General Investment Management (LGIM). This information was shared in a press release on Wednesday.

At first, the company plans to offer tokenized access to a few money market funds managed by State Street Global Advisors, Fidelity International, and LGIM. It’s possible that other fund types might be included in the future, as stated by the company.

Archax plans to distribute beneficial ownership tokens that mirror the ownership of clients’ shares in these funds. Initially, these tokens can be accessed through Hedera Hashgraph, XRPL, and Arbitrum. Other blockchain platforms may also be added over time.

Last month, it was disclosed by CoinDesk that Legal & General, a prominent pension and asset management company based in London with approximately $1.5 trillion in managed assets, intends to venture into the field of tokenization.

The process of converting tangible assets into digital tokens has seen significant expansion, with major players in conventional finance beginning to venture into this area. Notably, BlackRock, Franklin Templeton, and Abrdn have introduced tokenized investment funds.

According to Graham Rodford, CEO and co-founder of Archax, the concept of tokenizing real-world assets, particularly funds, is rapidly gaining traction. This is because the financial industry recognizes the route to expanded distribution and liquidity that tokenization offers, as well as novel applications such as transferring collateral.

Archax agreed to buy Spanish broker King & Shaxson Capital Markets (KSCM) last month for an undisclosed amount. The acquisition’s completion is subject to Spanish regulatory approval.