The world of blockchain and traditional finance (TradFi) is converging at an accelerating pace, with regulated crypto platforms bridging the gap through innovative asset tokenization. At the forefront of this transformation stands Archax, a U.K.-regulated digital securities exchange and custodian, which has announced a significant expansion of its real-world asset (RWA) offerings.
In a strategic move that underscores growing institutional confidence in blockchain-based finance, Archax is now integrating tokenized money market funds from global financial powerhouses: State Street Global Advisors, Fidelity International, and Legal & General Investment Management (LGIM). This development marks a pivotal moment for digital asset adoption, offering investors seamless, on-chain access to traditionally off-chain institutional-grade funds.
Expanding Access to Institutional-Grade Funds via Blockchain
The newly tokenized money market funds will provide investors with fractional ownership and enhanced liquidity through blockchain infrastructure. Archax will issue beneficial ownership tokens that represent clients’ proportional holdings in these underlying funds—enabling transparent, real-time settlement and 24/7 trading capabilities not typically available in traditional financial markets.
These tokenized assets will initially be deployed on three high-performance blockchains:
- Hedera Hashgraph – known for fast, low-cost transactions and strong governance
- XRPL (XRP Ledger) – recognized for rapid settlement and energy efficiency
- Arbitrum – a leading Ethereum Layer 2 solution offering scalability and EVM compatibility
Additional blockchain networks may be integrated in the future as demand grows and interoperability improves across ecosystems.
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This multi-chain approach allows Archax to cater to diverse investor preferences and technical requirements, ensuring broad accessibility while maintaining regulatory compliance and operational efficiency.
The Rise of Real-World Asset Tokenization
The tokenization of real-world assets—converting physical or traditional financial instruments into digital tokens on a blockchain—is rapidly gaining traction. By digitizing assets like bonds, equities, real estate, and now money market funds, institutions unlock numerous advantages:
- Increased liquidity: Illiquid assets become tradable in smaller denominations.
- Faster settlement: Reduces clearing and settlement times from days to minutes.
- Lower operational costs: Automation via smart contracts minimizes intermediaries.
- Global access: Investors worldwide can participate without geographic restrictions.
According to industry analysts, the tokenized asset market could reach $10 trillion by 2030, driven by demand for transparency, efficiency, and programmable finance. Archax’s latest initiative positions it as a key player in this emerging ecosystem.
Graham Rodford, CEO and co-founder of Archax, emphasized the momentum behind tokenized funds:
"Tokenized real-world assets, and in particular funds, are really gaining momentum. The industry sees the path to additional distribution and liquidity that tokenization brings, as well as the new innovative use cases like collateral transfer."
This vision aligns with broader trends where major asset managers are embracing blockchain technology to modernize capital markets.
Industry Leaders Embrace On-Chain Innovation
Archax is not alone in driving institutional adoption. Other financial giants have already launched or expanded their presence in the tokenized asset space:
- BlackRock launched its BUIDL fund, which surpassed $500 million in assets under management, offering exposure to tokenized U.S. Treasury securities.
- Franklin Templeton extended its tokenized money market fund to the Aptos blockchain, enhancing scalability and user experience.
- Abrdn partnered with Archax earlier to explore tokenization of traditional investment products.
Now, with LGIM—the asset management arm of London-based Legal & General, managing over $1.5 trillion in assets—entering the space, the signal is clear: institutional finance is shifting toward blockchain-based solutions.
CoinDesk previously reported that Legal & General was preparing to enter the tokenization domain, and this collaboration with Archax confirms that intent. As more pension funds, insurers, and asset managers follow suit, the integration of on-chain financial products into mainstream portfolios appears inevitable.
Strategic Expansion in Europe
Beyond product innovation, Archax is also expanding its geographic footprint. Last month, the firm announced plans to acquire King & Shaxson Capital Markets (KSCM), a Spanish brokerage, in an undisclosed deal. The acquisition awaits regulatory approval from Spanish authorities.
This move is expected to strengthen Archax’s presence across Europe, enabling it to offer regulated digital securities services to a broader client base. It also reflects a growing trend of consolidation in the digital asset space, where regulated platforms seek to scale operations and enhance cross-border capabilities.
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Core Keywords Driving Visibility
To ensure alignment with search intent and maximize discoverability, the following core keywords have been naturally integrated throughout this article:
- tokenized money market funds
- real-world assets (RWA)
- Archax
- State Street
- Fidelity International
- LGIM
- blockchain investment
- institutional crypto adoption
These terms reflect high-intent queries from investors, fintech professionals, and institutions seeking authoritative insights into the convergence of traditional finance and decentralized technology.
Frequently Asked Questions (FAQ)
What are tokenized money market funds?
Tokenized money market funds are digital representations of traditional money market investments issued on a blockchain. They offer investors exposure to low-risk, short-term securities like government bonds or commercial paper, but with added benefits such as faster settlement, fractional ownership, and potential 24/7 trading.
Why are State Street, Fidelity International, and LGIM partnering with Archax?
These institutions are leveraging Archax’s regulated platform to enter the growing tokenized asset market. By doing so, they can expand distribution channels, attract tech-savvy investors, improve operational efficiency, and stay competitive in an evolving financial landscape.
How does blockchain improve fund management?
Blockchain enables automated processes via smart contracts, reduces counterparty risk, shortens settlement cycles (from T+2 to near-instant), increases transparency through immutable records, and allows for programmable features like auto-rebalancing or dividend distribution.
Are tokenized funds safe for investors?
Yes—when offered through regulated platforms like Archax. As a U.K.-authorized crypto exchange and custodian, Archax complies with stringent financial regulations, conducts regular audits, and ensures investor protection through robust custody solutions and compliance frameworks.
Which blockchains support these tokenized funds?
Initially, the funds are available on Hedera Hashgraph, XRPL, and Arbitrum. Each network offers unique advantages: Hedera for enterprise-grade performance, XRPL for fast cross-border payments, and Arbitrum for Ethereum compatibility and scalability.
Can retail investors access these tokenized funds?
While primarily targeting institutional clients today, the fractional nature of tokenized assets opens doors for qualified retail investors in compliant jurisdictions. As regulations evolve, broader retail access is expected to increase.
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