Archax, the FCA regulated digital asset exchange, broker and custodian, today announced plans to launch crypto trading pairs against tokenised money market fund (MMF) instruments. This means professional clients will be able to hold assets in regulated MMFs – whilst earning a yield – and then trade directly against leading unregulated cryptocurrencies, without the need to convert into another asset, like fiat, first.
Typically, most crypto exchanges provide trading in cryptocurrencies as pairs against fiat currencies, like USD, or stablecoins. This means investors often end up holding funds in these unregulated instruments, earning no yield, and with single counterparty risk, such as with a bank or stablecoin issuer. These new crypto/MMF trading pairs from Archax will provide an alternative way to trade crypto which addresses all these points.
Graham Rodford, CEO and co-founder of Archax, explains: “The problems that crypto markets have experienced over the last 18 months highlight the need for as much regulated cover as possible when trading, and the banking crisis earlier this year means minimising counterparty risk is hugely important too. These new pairs, which will leverage our recently announced tokenised MMF instruments, provide a regulated, institutional-grade ‘currency’ which can then be used to trade cryptocurrencies directly – without the need to convert funds to fiat currencies or stablecoins first. In addition to the benefit of the protection you get whilst holding funds in these regulated MMFs, holders also earn a yield.”
These new crypto/MMF pairs will soon be available on the Archax exchange and custodian, covering leading cryptocurrency coins. The tokenised MMF instruments will also be used as a 'currency' for trading against other regulated digital and traditional assets on the Archax exchange.
“We are currently finalising plans for these new trading pairs, given the novel nature of this approach. We will make them available once complete”, concludes Rodford.
For more information on Archax products and services or to take part in this innovative new initiative, please contact the team here.
Disclaimer: This new facility will utilise a combination of Archax’s regulated FCA permissions as well as its MLR registration which allows the provision of cryptoasset services in the UK. Clients should be aware that the cryptoasset market and cryptoassets themselves are unregulated and therefore this type of investment is not protected by the Financial Services Compensation Scheme, and not actively supervised by the FCA. Capital at risk.
