Stellar Invests in Archax to Expand Tokenized Assets

Stellar Boosts Tokenization with Archax Investment

The Stellar Development Foundation (SDF), which supports the Stellar blockchain, has made a strategic investment in Archax, a digital asset exchange and tokenization firm based in the UK. This partnership aims to accelerate the growth of tokenized real-world assets (RWAs).

Archax has already integrated Stellar into its tokenization platform. As a result, it has launched a tokenized Aberdeen money market fund.

The specific amount of the investment was not disclosed.

Tokenization Market Growth

Tokenization of traditional financial instruments, including bonds, funds, and stocks, is gaining traction. It offers benefits like faster settlement times and increased transparency. The tokenized RWA market has doubled in the past year, reaching $26 billion. Projections estimate a market size of $2 trillion by 2030, according to reports from McKinsey, Ripple, BCG, and others.

Stellar's Role in RWA Tokenization

"The Stellar network was purpose-built to enable fast settlement times, low costs, and the tokenisation of real-world assets – the future of finance," said Raja Chakravorti, chief business officer at the Stellar Development Foundation.

Archax Expansion

Archax recently acquired BaFin-regulated Deutsche Digital Assets to expand its reach in crypto exchange-traded products across Europe.

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