By Hassan Mehmood (Saudi Arabia)
Archax exchange is a regulated cryptocurrency exchange and custodial services provider operating out of the UK. The company is working on making tokenized assets available with options such as bonds and funds to issue fragmented shares.
Archax will Launch a Regulated Exchange This Year
The firm has told media that it plans to introduce the new service before the end of the ongoing year. Simon Barnby, the Chief Operating Officer, was interviewed by CoinDesk recently.
He told journalists that tokenization for real-world assets will allow traditional finance assets to on-chain options. Therefore, the company is now launching a regulated digital currency market that will manage the regulated tokenized offerings on the platform.
He retained that the service is directed towards professional investors and commercial entities. It is important to note that tokenized assets are the digitized version of investment products such as bond, shares, real estate, commodities, etc.
Future of Tokenized Assets Market
At present, the estimates for tokenized asset products are projected to be around $10 trillion. For the bear market cycles, this market has a considerable revenue output of $3.5 trillion. These market projections for tokenized assets are issued by a digital asset management services provider called 21.co.
One example of a tokenized securities issuer is Euroclear. This firm issued the first ever digital note recently allowing it to raise 100 million euros or $106 million for supporting sustainable development projects.
Archax was registered by the Financial Conduct Authority as a centralized exchange, broker, and custodial services provider for digital and traditional assets in 2020 as per Barnby. At the same time, the firm is also working with abrdn market funds that are in euros, pounds, and dollars.
On this account, several hundred million dollars are said to be converted not tokenized money market fund. It means that investors are able to earn yield from this fund.
As per Barnby, the digitized fund is already live. For context, it is important to note that Abrdn is the largest asset management firm in the UK and an external shareholder following the purchase of a stake announced in August last year.
Successful Journey of Archax
Archax co-founder and CEO, Graham Rodford, told media during an interview in March this year about the journey of the trading platform. He retained that the firm was not very popular until 2022 and it was introduced in 2018.
However, the turning point for the enterprise arrived last year when Abrdn chief executive Stephen Bird invested in the firm as part of their plan to invest in blockchain-based tokenization protocols. As per Rodford, the company is on its way to integrating a detailed digital securities portfolio.
The firm also introduced custodial services in February this year. Meanwhile, the regulators in the UK are still changing and updating the regulatory requirements for the cryptocurrency trading sector. Abrdn collaborated with the crypto trading platform for a proof-of-concept project.
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