Crypto Exchange Archax to Offer Tokenized Money Market Funds from State Street, Fidelity International and LGIM

• Archax adds money market funds from State Street, Fidelity International and Legal and General Investment Management to its platform.
• Tokenized assets will be available on Hedera Hashgraph, XRPL and Arbitrum.

Archax, a U.K.-regulated crypto exchange and custodian, has added funds from State Street, Fidelity International and Legal & General Investment Management (LGIM) to the range of tokenized real-world assets (RWAs) that it offers, the company said in a press release Wednesday.

The firm will initially provide tokenized access to certain State Street Global Advisors, Fidelity International and LGIM money market funds. Other types of funds may also be added in the future, the company said.

Archax will issue beneficial ownership tokens representing clients' holdings in such funds. These will initially be made available on Hedera Hashgraph, XRPL and Arbitrum, with other blockchains potentially following.

CoinDesk revealed last month that Legal & General, the London-headquartered pension and investment management firm with $1.5 trillion in assets under management, was planning to enter the tokenization space.

The tokenization of real-world assets has grown as traditional finance giants have waded into the space. BlackRock, Franklin Templeton and Abrdn have all launched tokenized funds.

"Tokenized real-world assets, and in particular funds, are really gaining momentum," said Graham Rodford, CEO and co-founder of Archax, in the release. "The industry sees the path to additional distribution and liquidity that tokenization brings, as well as the new innovative use cases like collateral transfer," Rodford added.

Archax agreed to buy Spanish broker King & Shaxson Capital Markets (KSCM) last month for an undisclosed amount. The acquisition's completion is subject to Spanish regulatory approval.