Assetera, a regulated digital securities trading venue, and UK-based digital exchange Archax have entered a partnership to distribute tokenized real-world assets in Europe.
Archax is backed by asset manager Abrdn. In 2023, Archax, a UK FCA-regulated digital assets business started to offer tokenized investments in Abrdn’s money market funds via their trading venue, using technology by Hedera Hashgraph. The firm launched its first blockchain-based investment by tokenizing the Lux Sterling money market fund.
The firms will now provide investors access to digital assets, such as funds and structured products listed on Archax.
Archax Will Give Tokenized Access to Abrdn Funds
The deal between Assetera, and Archax will give tokenized access to money-market funds from Abrdn, an investment firm managing £506 billion in assets.
The tokenized products will be made available on Assetera, with additional funds from other asset managers expected to follow.
“Tokenization represents a once-in-a-generation opportunity for the financial services industry, with McKinsey predicting the market could be worth up to $4 trillion by 2030,” said Thomas Labenbacher CEO and founder of Assetera in a statement.
“It’s vital that institutions can partner with trusted providers with the most robust and reliable technology, which is why we’re delighted to be working with Archax to provide them with this,” said Labenbacher.
Tokenization Trend Gains Momentum
The growing trend of tokenizing traditional assets has caught the attention of legacy financial institutions. According to a recent report by Moody’s, a leading investment risk assessment firm, the value of tokenized funds has surged from $100 million at the beginning of 2023 to approximately $800 million in 2024 driven by the tokenization of U.S. treasuries.
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