Archax partners with Assetera to offer tokenized funds across EU

Archax, a digital securities exchange and real-world assets firm regulated by the United Kingdom’s Financial Conduct Authority and tokenized securities platform Assetera, have announced a major strategic partnership on tokenization of real-world assets.

The two platforms said on October 2 that their collaboration aims at bringing tokenized RWA to investors across the European Union or European Economic Area.

FCA-regulated Archax and EU-regulated Assetera’s partnership will also involve UK-based investment firm Abrdn, the companies revealed in the announcement on Tuesday.

The collaboration allows Archax to offer its digital assets, which includes funds and structured products, via the Assetera platform.

Investors will have access to both primary sales and trading on secondary markets.

In this case, Archax will use the strategic partnership to deliver and distribute numerous tokenized funds, including to Arbdn investors.

The global investment firm manages over 506 billion British pounds ($662 billion) in assets.

Archax and Assetera will expand the funds’ access to users across the EU/EEA.

Growing RWA market

According to rwa.xyz, the global real-world assets tokenization market has grown rapidly to reach over $12.8 billion in total RWA on-chain as of October 8, 2024.

This includes notable surge in blockchain technology adoption over the past several months.

Top products include US Treasuries debt, non-US government debt, commodities, private credit and institutional funds.

Some of the biggest players in the industry include BlackRock, Franklin Templeton and Superstate. Archax and Assetera eye further presence in the EU market.

Thomas Labenbacher, founder and CEO of Assetera, said in a comment:

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. 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.

Navigating market challenges

While the RWA space is witnessing increased traction, there’re still several challenges impacting adoption.

The problems of regulatory uncertainty and limited liquidity are key issues, while technological barriers also hinders the ecosystem.

Both Archax and Assetera are keen on providing a solution that addresses the challenges via the regulated platform.

This should accelerate RWA tokenization across the EU, closing the gap between traditional finance and the digitally-native marketplace. 

Commenting on this potential, Nick Donovan, chief revenue officer at Archax, said:

“This collaboration sets a new benchmark for digital asset distribution in the EU/EEA, integrating Archax’s regulated digital infrastructure with Assetera’s regulated DeFi market, further advancing the adoption of tokenized assets in Europe.”

Archax recently teamed up with tokenized RWA provider Centrifuge and web3 native asset manager Anemoy Capital. The partnership allowed for the listing of the Liquid Treasury Token (LTF), a short-duration US Treasury bill portfolio.

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