Archax, a digital asset exchange, brokerage, and custodian regulated in the United Kingdom by the Financial Conduct Authority, has launched “pool tokens,” enabling multi-asset portfolio creation on the Hedera Network.
Summary
- UK-regulated platform Archax has partnered with Hedera to launch Pool Token functionality.
- Pool tokens allow market participants to create multi-asset portfolios onchain.
- Users can transfer pool tokens or use them as collateral.
Archax and Hedera announced the partnership and launch of Pool Token functionality on Sept. 10, noting that the new product allows users to tap into tokenization via a single token on Hedera (HBAR). The launch of pool tokens means users can now create a multi-asset portfolio onchain from tokenized assets across the market.
What is a pool token?
A “pool token” is a new transferable token that represents a basket of tokenized assets onchain. In the context of Archax and Hedera’s integration, this is a token that will allow an issuer to create a multi-asset portfolio that can include a range of assets such as equity, debt, funds and cryptocurrencies.
According to Archax, pool tokens allow investors to diversify their investment strategies, with the flexibility of creation adding to the overall benefits of an onchain product.
Graham Rodford, the co-founder and chief executive officer of Archax, noted:
“By enabling the creation of Pool Tokens, an issuer could come to us to create a natively on-chain portfolio, basket, index or fund. Tokenised portfolios can be assembled, transferred, and managed with speed and flexibility, so we’re eliminating the operational inefficiencies that have long plagued traditional investment structures – all while maintaining regulatory compliance and institutional-grade security.”
BlackRock funds in first basket
The rollout has the first Pool Token lined up for a mix of some of the top money market funds in the world, with the basket covering asset managers like Aberdeen, BlackRock, and State Street.
As well as instant fund creation, pool tokens offer the benefit of transferability and composability. In this case, users can migrate an entire portfolio across chains without the burden of complex paperwork or the friction of dealing with transfer agents.
Pool tokens can also be utilized as collateral on Archax’s Nest network.