XDC Network, a leading enterprise-grade Layer-1 blockchain, has announced the launch of its first tokenized money market fund (MMF) products in collaboration with Archax, a regulated FCA-approved digital asset exchange, broker, and custodian. This marks a significant milestone in the companies’ ongoing partnership to tokenize real-world assets (RWAs), making established investment vehicles more accessible and efficient for institutional investors.
The inaugural fund tokens on the XDC platform represent four of the world’s largest money market funds, provided by major asset managers such as abrdn, Fidelity International, BlackRock, and State Street. These fund tokens will be followed by additional offerings from over 100 other asset managers available through Archax, offering expanded access to institutional investors globally.
Revolutionizing Access to Money Market Funds
The tokenization of MMFs provides a digital-first solution to the increasing demand for regulated financial products. Currently, there are $11.5 billion in tokenized RWAs on-chain, with projections suggesting this figure could grow to $16 trillion by 2030. By bringing these traditional financial assets onto the blockchain, XDC Network and Archax aim to enhance liquidity, accelerate settlement times, and reduce operational costs, creating new opportunities for institutional investors.
Keith O’Callaghan, Head of Asset Management and Structuring at Archax, highlighted the significance of this development: “Providing digital representations of major MMFs opens up a potential new audience for these yield-bearing products that have historically been difficult for some investors to access. We’re thrilled to reach this milestone with XDC Network, a firm that is poised to become a central player in the future of finance.”
A Seamless and Secure Digital Infrastructure
The tokenization process leverages XDC Network’s high-performance delegated proof-of-stake (dPoS) consensus mechanism, which facilitates transactions with sub-second finality and near-zero gas fees. This technology ensures that tokenized MMFs can be transacted quickly, securely, and at a fraction of the cost associated with traditional methods. Additionally, XDC’s platform is designed to meet the rigorous compliance requirements demanded by institutional investors, ensuring security, scalability, and robust regulatory reporting.
Angus O’Callaghan, Head of Trading and Markets at XDC Network, expressed excitement about the project: “With our platform’s robust performance and functionality, we have the ideal protocol for real-world asset tokenization, offering institutions the opportunity to engage with regulated entities like Archax. We are proud to continue our collaboration and provide institutions with access to some of the world’s largest MMFs, unlocking new possibilities for transparency and efficiency.”
Expanding the Frontier of Financial Innovation
This development is part of the ongoing collaboration between XDC Network and Archax, combining the power of a regulated digital asset platform with the potential of blockchain technology to bridge the gap between traditional finance and the digital asset world. Together, the firms are creating a pathway for financial institutions to access tokenized RWAs in a cost-effective and efficient manner, advancing the adoption of blockchain technology in global financial markets.
As this partnership continues to evolve, it underscores a broader trend toward digitizing financial products, positioning XDC Network and Archax as key players in the future of the financial services industry.
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