Archax, the UK’s FCA regulated digital securities exchange, broker and custodian, announced a new partnership with XDC Network, an enterprise-grade Layer-1 EVM-compatible blockchain.
The firms will combine the power of a regulated digital asset platform with blockchain solutions to enable FIs to access tokenized real-world assets (RWAs) “cost-effectively and efficiently – and in the process broadening the adoption of digital assets.”
The collab enables access to digital assets listed on Archax via the XDC Network platform.
Archax is an innovator in the industry and announced adding money market funds from several more “blue-chip asset managers” to its platform.
XDC is a network designed to power global payments and real-world assets focused on “scalability, security and interoperability.”
Keith O’Callaghan, Head of Structuring at Archax said:
“The underlying blockchain DLT technology and tokenization are set to reshape traditional financial markets by creating an entirely new set of financial and trading instruments.”
According to a report by Standard Chartered, the market for tokenized real-world assets is projected to “reach $30.1 trillion by 2034.”
Demand is growing for solutions like tokenized money market funds, enabling Fintech’s and firms in the crypto space to “access yield bearing instruments in digital form that can also be used to transfer value while maintaining flexibility.”
Angus O’Callaghan, Head of Markets at XDC Network said that with their platform’s robust performance and functionality, they have “the ideal protocol for real world asset tokenization for institutions.” They added that within the digital asset space, these institutions desire “to work with regulated entities who can aim to ensure that transactions are both transparent and efficient.”
As covered, Archax claims that it is the first digital securities exchange regulated by the FCA in London.
Targeted at institutions, Archax also has its FCA brokerage, custody and crypto permissions.
Founded by professionals from traditional capital markets and backed by an accomplished advisory board, Archax offers a bridge “between the blockchain world and the existing investment space.”
The Archax team is used to working in regulated markets and has a deep understanding of the blockchain landscape and tokenization – as well as a vision of how to evolve them and “open up digital assets to institutions in a transparent manner.”
Archax’s solutions are reportedly built using “high-performance” infrastructure, integrated into the existing institutional trading workflow.
XDC Network is a blockchain developed to “support trade finance and RWA tokenization.”
An EVM-compatible Layer 1, XDC Network reaches consensus through a delegated proof-of-stake (dPoS) mechanism, which allows for “a transaction time of mere seconds, near-zero gas fees, and a high number of transactions per second (TPS).”
As mentioned in the announcement, the XDC Network powers a wide range of novel blockchain use cases and provides “infrastructure for enterprise-grade blockchain applications.”