Archax, a digital asset exchange, has “created a tokenised representation of its interests” in a liquidity fund offered by asset manager abrdn.
The tokenised interest is in the £14 billion sterling Aberdeen Standard Liquidity Fund (Lux) and uses distributed ledger technology (DLT).
Archax is also a broker and custodian, and abrdn took a stake in the firm when Archax raised £28.5 million in Series A funding last year.
Abrdn is also governing council member of Hedera Hashgraph, which provided the DLT infrastructure to the tokenisation project.
Archax and abrdn are using Archax’s Tokenisation Engine for a number of “traditional, real-world tokenisation projects” that the parties are working on together, said Archax, which is regulated by the UK Financial Conduct Authority.
Russell Barlow, global head of alternatives at abrdn, said: “We made the investment into Archax because we see the future for financial markets lies with leveraging new technologies, such as Web 3.0 and DLT. It is exciting to see a tangible application of Archax’s tokenisation engine working with Hedera, and it paves the way for us to look at creating other digital, blockchain-based token investment solutions.”
Graham Rodford, CEO and co-founder of Archax, adds: “Creating a token representation of our interest in such a traditional and institutional-grade vehicle opens up all sorts of interesting opportunities in the digital asset space. We are exploring other applications with abrdn to improve access to investment products in this space in the near future.”
*This article originally said abrdn had “completed” a tokenisation project with Archax, but in fact the tokenisation of Archax’s interest is a further stage of the project.
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