{"id":938,"date":"2025-10-16T15:06:17","date_gmt":"2025-10-16T15:06:17","guid":{"rendered":"https:\/\/hederav2stg.wpenginepowered.com\/?page_id=938"},"modified":"2025-12-16T03:45:18","modified_gmt":"2025-12-16T03:45:18","slug":"archax","status":"publish","type":"case-study","link":"https:\/\/hedera.com\/case-study\/archax\/","title":{"rendered":"Archax brings traditional finance on-chain with Hedera and industry leading financial institutions"},"content":{"rendered":"\n
Problem<\/h2>\n\n\n\n
Institutional investors are hesitant about digital assets due to a lack of regulatory clarity, concerns over security and volatility, and the absence of a business oriented infrastructure that integrates seamlessly with existing financial systems for trading, custody, and settlement. This has created a complex and risky environment that is discouraging mainstream adoption.<\/p>\n\n\n\n
Solution<\/h2>\n\n\n\n
Archax offers a fully regulated platform for issuing, trading, and holding tokenized securities. Integrated with Hedera, it uses Hedera Token Service (HTS) to tokenize assets like money market funds\u2014enabling fractional ownership and fast settlement. For example with Aberdeen, Archax\u2019s Tokenization Engine minted regulated fund tokens, with custody and brokerage ensuring compliance and security. This partnership demonstrates how regulated infrastructure can modernize fund distribution and expand access to tokenized assets.<\/p>\n\n\n\n
\n<\/figure>\n\n\n\n<\/figure>\n\n\n\n
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Tokenized real-world assets, and in particular funds, are really gaining momentum. The industry sees the path to additional distribution and liquidity that tokenization brings, as well as the new innovative use cases like collateral transfer.<\/p>\n\n\n\n
Graham Rodford<\/p>\n\n\n\n
CEO & Co-Founder<\/p>\n\n\n\n<\/figure>\n<\/div>\n<\/div>\n\n\n\n
Archax and Hedera: Tokenization of money market funds<\/h2>\n\n\n\n
Archax is the UK’s first FCA-regulated digital asset exchange, custodian, and brokerage, designed for institutional investors. Founded in London in 2018 by veterans from traditional capital markets, the platform uses the Hedera network to unlock investment opportunities for institutional investors by tokenizing real-world assets. The Hedera network is integrated into Archax’s tokenization engine.<\/p>\n\n\n\n
With fund ownership represented on a blockchain, investors benefit from same-day payments and have any income automatically reinvested. Income is distributed as new tokens through “airdrops” to investor accounts. Digital assets can be programmed to automatically follow trading agreement rules, streamlining the margining process, reducing operational costs, enhancing collateral efficiency, and minimizing counterparty risk.<\/p>\n\n\n\n
First deployment: Aberdeen money market fund tokenization<\/h2>\n\n\n\n
Major UK asset manager Aberdeen launched its first blockchain-based investment by tokenizing interests and payouts of its \u00a315 billion LUX Sterling money market fund on Hedera using Archax’s Tokenisation Engine. Archax tokenizes Aberdeen’s fund via Hedera for swift liquidity, easing reinvestment and speeding settlements, freeing billions. This pioneering step demonstrated how tokenization could transform traditional fund operations by enabling near-instantaneous asset transfers and reduced settlement times.<\/p>\n\n\n\n
Expansion to major fund managers<\/h2>\n\n\n\n
In November 2024, Archax added funds from State Street<\/strong>, Fidelity International<\/strong>, and Legal & General Investment Management (LGIM)<\/strong> to its range of tokenized real-world assets. Following this expansion, Archax launched Pool Tokens on Hedera, with the first token holding equal parts of money market funds from four leading asset managers: Aberdeen, BlackRock, State Street, and Legal & General\u2014effectively creating a natively digital “fund of money market funds.”<\/p>\n\n\n\n
Lloyds FX trade using tokenized MMF and UK government bonds<\/h2>\n\n\n\n
In July 2025, Archax facilitated tokenized collateral movement between Lloyds Banking Group and Aberdeen to support a foreign exchange transaction. Tokenized units of Aberdeen’s money market fund and UK gilts were used as collateral for FX trades between Aberdeen and Lloyds, with Archax issuing, transferring, and securely holding these digital tokens on Hedera. This UK-first trade demonstrated that regulated digital assets can serve as collateral under existing regulatory frameworks.<\/p>\n\n\n\n
Tokenization of the Canary HBAR ETF<\/h2>\n\n\n\n
In December 2025, Archax announced the tokenization and first on-chain transaction of the Canary HBR ETF on the Hedera network. The landmark transaction was executed after-hours on November 27, 2025, when traditional US markets were closed for Thanksgiving, demonstrating how regulated assets can operate on blockchain infrastructure in a continuous, 24\/7 trading cycle. The initiative showcases how traditional financial instruments can be issued, transacted, and settled securely on-chain while maintaining the compliance and regulatory oversight expected by institutional investors.<\/p>\n\n\n\n
Why Hedera<\/h2>\n\n\n\n
Hedera provides the scalability, economic predictability, and responsible governance required by traditional finance. Hedera Council – composed of industry-leading enterprises and institutions – provides a robust foundation of governance upon which digital transformation can intersect efficiently with compliance. These core Hedera attributes align with Archax’s commitment to maintaining a regulated digital asset environment and resonate with institutional clients looking for regulatory clarity in the still emerging decentralized evolution of traditional finance.<\/p>\n\n\n\n
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