Archax, a digital securities exchange and custodian regulated by the Financial Conduct Authority, has recently formed a strategic partnership with layer-1 blockchain XDC Network to propel the adoption of tokenized real-world assets within the financial industry.
The collaboration, unveiled on December 5th, is geared towards harnessing the power of regulated digital assets and blockchain technology to make tokenized RWAs more accessible to financial institutions. Archax and XDC Network are placing a strong emphasis on ease of access and compliance as key drivers in unlocking the full potential of RWA tokenization for institutional players, as highlighted in a recent blog post.
Keith O’Callaghan, head of structuring at Archax, expressed his enthusiasm about the partnership, stating, “Innovation and evolution of digital assets has been at our core since inception. The underlying blockchain DLT technology and tokenization are set to reshape traditional financial markets by creating an entirely new set of financial and trading instruments.”
This partnership comes at a time of exponential growth for the tokenized RWA market, with both blockchain and traditional finance companies increasingly migrating real-world assets onto blockchain platforms. Major players such as BlackRock have already dipped their toes into this space.
With the rise of institutional-grade decentralized finance, Standard Chartered has forecasted that the tokenized RWA industry could potentially reach a staggering $30 trillion by 2034.
In a similar vein, in June 2024, Ripple and Archax joined forces on a groundbreaking tokenization project aimed at bringing millions of dollars in tokenized RWAs onto the XRP Ledger. Furthermore, in November, the platform made waves by announcing the addition of State Street, Fidelity International, and Legal & General Investment Management funds to its roster of tokenized RWA offerings.
The integration of tokenized real-world assets into the digital securities landscape signifies a monumental shift in the way traditional financial instruments are being reimagined and traded. As more players like Archax and XDC Network pave the way for innovation in this space, the future of tokenized RWAs looks increasingly promising.
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