Archax, a digital securities exchange and custodian regulated by the Financial Conduct Authority, has announced a partnership with layer-1 blockchain XDC Network to accelerate the tokenization of real-world assets (RWAs). The collaboration, revealed on December 5, aims to utilize regulated digital assets and blockchain technology to make tokenized RWAs more accessible to financial institutions.
The partnership between Archax and XDC Network highlights the importance of ease of access and compliance in unlocking the potential of RWA tokenization for institutional players. Keith O’Callaghan, head of structuring at Archax, expressed his excitement 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 significant growth in the tokenized RWA market, with both blockchain and traditional finance companies increasingly moving real-world assets onto the blockchain. Major players like BlackRock are already involved in this space, and as institutional-grade decentralized finance gains traction, Standard Chartered has projected the tokenized RWA industry to reach $30 trillion by 2034.
In June 2024, Ripple and Archax collaborated on a tokenization project aimed at bringing millions of dollars in tokenized RWAs onto the XRP Ledger. In November, Archax announced the addition of State Street, Fidelity International, and Legal & General Investment Management funds to its tokenized RWA offerings, further solidifying its position in the market.
The partnership between Archax and XDC Network is a significant step towards driving further adoption of tokenized real-world assets in the financial industry. With the potential to reshape traditional financial markets and create new opportunities for financial and trading instruments, this collaboration marks a key milestone in the evolution of digital assets and blockchain technology.