Archax, the digital asset exchange, broker and custodian, announced plans to expand its custodian and tokenization capabilities to bring traditional equities and government debt on-chain – extending what it has done with other real-world assets (RWAs), such as funds, bonds, carbon credits and uranium.
This move means that holdings of these equity and debt RWAs can have digital representations, in token form, which can “be held in wallets, pledged as collateral, used for payments and trade 24/7.”
Graham Rodford, CEO and co-founder of Archax, comments:
“Having been one of the first pioneers in the tokenisation of RWAs with our tokenised Money Market Funds back in June 2023, we have since seen increasing demand to bring other classes of RWAs on-chain to leverage the benefits that delivers. Addressing this demand, we have previously added assets like tokenised corporate bonds, carbon credits and uranium to our platform, and are now adding other traditional assets into the mix – starting with UK equities and gilts, then looking at US instruments next.”
They added:
“This is being done in preparation for launching these RWAs on our regulated digital market, which will provide secondary 24/7 liquidity too. With all the excitement and growth around RWAs, we are one of the only places in the world that can create, custody and trade these regulated assets in token form.”
Once these instruments are in token form, they can leverage a variety of benefits, “such as: holding them in digital wallets, allowing them to be held in one place alongside natively crypto assets; pledging them or transferring them as collateral, using natively digital payment rails; using them for making payments 24/7, or instead of/alongside stablecoins, eliminating the need to use traditional banking rails; and ultimately list and trade on 24/7 exchanges for secondary trading alongside other crypto instruments.”
Rodford also mentioned:
“Since we started Archax back in 2018, we predicted that all assets would ultimately come ‘on chain’ and we are really seeing that prediction becoming a reality now. Allowing traditional equity and debt instruments to be represented in token form is a logical and key next step in this process and we are proud to continue to be one of the leading pioneers in this space.”
Archax tokenizes RWAs onto a number of DLTs/blockchains, “including Algorand, Arbitrum, Ethereum, Etherlink, Hedera Hashgraph, Polygon, Solana, Stellar, XDC and XRPL.”
