Expands range of tokenised RWAs it provides with additional funds
London, 20th November 2024 – Archax, the UK-based, FCA-regulated exchange, broker and custodian for digital assets, today announced that it has added State Street, Fidelity International and Legal & General Investment Management (LGIM) funds to the range of tokenised real-world assets (RWAs) that it offers. Starting initially with providing tokenised access to certain State Street Global Advisors, Fidelity International and LGIM money-market funds (MMFs) through beneficial ownership tokens, minted and offered by Archax representing the holdings of clients of Archax in such funds. This might be expanded to include other fund offerings in due course.
Providing digital representations of MMFs is proving to be a popular use case for tokenisation and blockchain technology, as it opens up a potential new audience for these types of yield-bearing products that historically have been challenging to access – such as holders of stablecoins or FinTech firms holding cash as treasury. Additionally, the MMF tokens also have the potential to be used as collateral, in the form of a yield-bearing “currency”, that can be used for payments between counterparties.
Graham Rodford, CEO and co-founder of Archax, comments: “Tokenised real-world assets, and in particular funds, are really gaining momentum. The industry sees the path to additional distribution and liquidity that tokenisation brings, as well as the new innovative use cases like collateral transfer. We are really pleased to be expanding our offerings by working with blue-chip industry leaders and are excited to be adding the State Street Global Advisors, Fidelity International and LGIM names to our growing list of partners.”
The first funds to be listed on the Archax platform in token form are the Irish domiciled State Street USD/GBP/EUR Liquidity LVNAV Funds, the Fidelity ILF USD/Sterling/Euro Funds and the LGIM Sterling/USD/Euro Liquidity Funds. Archax will issue beneficial ownership tokens representing the holdings of clients of Archax in such funds and initially make these tokens available on Hedera Hashgraph, XRPL and Arbitrum.
Capital at risk. These funds are for professional/institutional investors only in the jurisdictions in which they are registered.
About Archax
Archax is the first ever digital securities exchange regulated by the FCA in London. Targeted at institutions, Archax also has its FCA brokerage, custody and crypto permissions.
Founded by experts from traditional capital markets and backed by an accomplished advisory board, Archax offers a credible bridge between the blockchain world and the existing investment space. The Archax team is used to working in highly regulated markets and has a deep understanding of the blockchain landscape and tokenisation too – 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 built using proven, resilient, scalable, high-performance infrastructure, integrated into the existing institutional trading workflow.
For more information, go to www.archax.com.
About Legal & General’s Asset Management Division
We are one of Europe’s largest asset managers and a major global investor across public and private markets, with £1.122 trillion in assets under management. Our clients include individual savers, pension scheme members and global institutions, who invest alongside L&G’s own balance sheet. As a global investor, we are present where our clients most need us – from Hong Kong and Singapore, to major European financial hubs, to Chicago – operating under the Legal & General and LGIM brands. Our work is underpinned by our enduring commitment to responsible investment, dedicated to creating long-term, sustainable value for our clients and partners.
About State Street Global Advisors
For over four decades, State Street Global Advisors has served the world’s governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis, and market-tested experience, and as pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with US $4.73 trillion† under our care.
*Pensions & Investments Research Center, as of 12/31/23. †This figure is presented as of September 30, 2024 and includes ETF AUM of $1,515.67 billion USD of which approximately $82.59 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.
About Fidelity International
Fidelity International offers investment solutions and services and retirement expertise to more than 2.8 million customers globally. As a privately held, purpose-driven company with a 50-year heritage, we think generationally and invest for the long term. Operating in more than 25 locations and with $925.7 billion in total assets, our clients range from central banks, sovereign wealth funds, large corporates, financial institutions, insurers, and wealth managers, to private individuals.
Our Global Platform solutions business provides individuals, advisers and employers with access to world-class investment choices, third-party solutions, administration services and pension guidance. Together with our Investment Solutions & Services business, we invest $645.4 billion on behalf of our clients. By combining our asset management expertise with our solutions for workplace and personal investing, we work together to build better financial futures. Data as of 30 September 2024. Read more at www.fidelityinternational.com.