Digital securities platforms Archax and Assetera have announced a strategic partnership aimed at providing investors regulated access to tokenized real-world assets (RWAs) throughout the United Kingdom, the European Union (EU), and the European Economic Area (EEA). This collaboration is set to expand investment opportunities, offering greater access to regulated tokenized funds.
Addressing Challenges in the Tokenized RWA Market
The partnership seeks to overcome several hurdles currently facing the tokenized RWA market, including:
- Regulatory Uncertainty: Navigating complex regulations across different jurisdictions.
- Liquidity Constraints: Improving market liquidity for tokenized assets.
- Technological Complexities: Simplifying access and trading processes for investors.
By combining their strengths, Archax and Assetera aim to create a more seamless, compliant, and accessible marketplace for tokenized assets.
Expanding Investor Access Through Tokenized Funds
The Assetera platform will initially offer tokenized money-market funds from Abrdn, a major asset management firm overseeing approximately £506 billion ($662.4 billion) in assets. Other funds from additional asset managers are expected to be available through the platform in the near future, broadening the investment options for European investors.
In an interview with Cointelegraph, Assetera CEO and founder Thomas Labenbacher emphasized Archax’s role as a UK-regulated digital asset exchange and highlighted Assetera’s adherence to European regulations, specifically the Markets in Financial Instruments Directive (MiFID) 2014 and the Markets in Crypto-Assets Regulation (MiCA). These frameworks aim to provide a compliant environment for trading RWAs, ensuring regulatory oversight and investor protection.
Facilitating Digital Asset Trading Across Primary and Secondary Markets
The collaboration integrates Archax’s regulated digital infrastructure with Assetera’s platform, enabling access to a range of digital assets, including tokenized funds and structured products. Investors will have the opportunity to participate in both primary sales and secondary market trading, enhancing the overall liquidity and accessibility of these tokenized offerings.
Nick Donovan, Chief Revenue Officer at Archax, commented on the partnership:
“This collaboration sets a new benchmark for digital asset distribution in the EU/EEA, integrating Archax’s regulated digital infrastructure with Assetera’s regulated decentralized finance market, further advancing the adoption of tokenized assets in Europe.”
Future Expansion and Development Plans
The two firms plan to build upon their partnership by establishing relationships with more fund companies and onboarding additional tokenized funds to the Assetera platform. Labenbacher expressed optimism about the collaboration, noting its potential to scale and increase the range of assets available for tokenization, enhancing investor options across Europe.