Archax launches Stablecoin Yield Service
“These yield-bearing instruments provide a compelling alternative from the current stablecoin asset-holding strategies. Once tokenized, they can serve as a form of ‘currency’ for transfers or as collateral for borrowing and lending. This is a clear demonstration of how blockchain and tokenization are set to transform and modernize traditional financial market structures.”
Archax, the digital asset exchange, broker, and custodian regulated by the Financial Conduct Authority (FCA), has launched a Stablecoin Yield Service.
The Stablecoin Yield Service allows individuals to convert their stablecoin assets into tokenized, regulated Money Market Funds (MMFs) that generate yield.
This service addresses the issue of stablecoins sitting passively and not generating returns amid a high-interest rate environment. That way, users can still have an alternative to traditional banking that provides access to a selection of MMFs from leading asset managers without the single counterparty risk typically associated with banks and stablecoin issuers.
“Alternative from the current stablecoin asset-holding strategies.”
Graham Rodford, CEO and co-founder of Archax, said: “By leveraging our regulated digital asset status along with our cryptocurrency permissions, we are uniquely positioned to offer innovative services that bridge the gap between traditional and digital financial products.
“These yield-bearing instruments provide a compelling alternative from the current stablecoin asset-holding strategies. Once tokenized, they can serve as a form of ‘currency’ for transfers or as collateral for borrowing and lending. This is a clear demonstration of how blockchain and tokenization are set to transform and modernize traditional financial market structures.”
Archax has been making significant strides in the digital assets space with several recent initiatives aimed at enhancing accessibility and providing innovative solutions in the financial markets. The firm launched its tokenized engine in 2023 as part of their broader strategy to bridge the gap between traditional financial markets and the evolving digital asset space.
The tokenization engine enables the creation of tokens backed by any regulated or unregulated real-world or traditional asset. The engine allows Archax to roll out token representations of existing assets, starting with blue-chip UK traditional equities and funds to trade alongside new cryptoassets.
The Archax institutional, digital asset ecosystem facilitates fundraising, tokenization, custody, junior market, and full-blown exchange. It also covers a broad range of assets, from cryptocurrencies to tokeniszd assets to digital securities to NFTs.
The company also rolled out its regulated digital asset custodian and its primary raise platform. Now, it is creating tokens backed by top listed traditional equities which they plan to trade on their exchange.
After tokenizing traditional equities, Archax plans to issue tokens of treasury instruments, carbon credits, and a number of tokenized fund projects, as well as other innovative cryptoasset instruments resulting in a multi-asset venue.
In 2022, Archax received a $28.5 million funding round led by the UK asset management giant, Abrdn. This investment infused Archax with substantial financial resources to position the company for further growth and expansion in the digital assets exchange arena.
