Archax, a digital securities exchange and custodian regulated by the Financial Conduct Authority, partners with layer-1 blockchain XDC Network to drive adoption of tokenized real-world assets
The partnership, announced on December 5, aims to leverage regulated digital assets and blockchain technology to make tokenized RWAs accessible to financial institutions. Archax and XDC Network (XDC) highlighted ease of access and compliance as critical factors in unlocking the potential of RWA tokenization for institutional players, according to a blog post.
Keith O’Callaghan, head of structuring at Archax, commented:
“Innovation and evolution of digital assets have been at our core from the start. The underlying blockchain DLT technology and tokenization will reshape traditional financial markets by creating an entirely new set of financial and trading instruments.”
You might also like: Tether simplifies tokenization for businesses with a new platform
The partnership comes during a period of significant growth for the tokenized RWA market. Blockchain and traditional finance companies have been moving more and more real-world assets on-chain, with major players like BlackRock already involved.
With decentralized finance gaining popularity at an institutional level, Standard Chartered has predicted that the tokenized RWA industry will reach $30 trillion by 2034.
In June 2024, Ripple and Archax collaborated on a tokenization project aimed at bringing millions of dollars of tokenized RWAs on-chain via the XRP Ledger. In November, the platform announced that it had added State Street, Fidelity International, and Legal & General Investment Management funds to its tokenized RWA offering.
Read more: Centrifuge and Anemoy Partner with Archax to Bring Liquid Treasury Tokens to Market
