Archax, which claims to be the only UK Financial Conduct Authority (FCA)-regulated digital asset exchange, broker, and custodian, has recently announced the introduction of its Stablecoin Yield Service.
This service reportedly enables individuals with assets in stablecoins (or crypto-assets that are supposed to be pegged 1 to 1 with the US dollar or other major fiat currencies) “to transition them into yield-generating instruments, such as regulated Money Market Funds (MMFs), which are also available in tokenised form.”
In the current high-interest market environment, investors with assets in passive stablecoins are missing out on potential yields from utilising those assets-especially as holding stablecoins often becomes the default option when going “risk off” from crypto trading.
Many investors, however, wish to “maintain immediate access to their assets, making traditional interest-bearing bank accounts less appealing.”
Archax explains that it “offers a variety of MMFs from leading asset managers, allowing users to effortlessly transfer their stablecoin holdings into regulated, yield-bearing instruments.”
As noted in the update, this solution is said to be “particularly appealing as it eliminates the single counterparty risk associated with banks and stablecoin issuers.”
Graham Rodford, CEO and co-founder of Archax, comments:
“By leveraging our regulated digital asset status along with our cryptocurrency permissions, we are uniquely positioned to offer innovative services that bridge the gap between traditional and digital financial products. These yield-bearing instruments provide a compelling alternative from the current stablecoin asset holding strategies. Once tokenised, they can serve as a form of ‘currency’ for transfers or as collateral for borrowing and lending. This is a clear demonstration of how blockchain and tokenisation are set to transform and modernise traditional financial market structures.”
For additional details on converting your stablecoin holdings into one of the 60+ funds they offer from various asset managers, you may reach out to the team via their official website.