Archax, a U.K.-regulated crypto exchange, has partnered with State Street, Fidelity International, and Legal & General Investment Management (LGIM) to introduce tokenized versions of their money market funds to its platform. Initially, these tokenized assets will be available on Hedera Hashgraph, XRPL, and Arbitrum.

The company announced that it will offer beneficial ownership tokens, indicating clients' holdings in selected funds. This initiative is part of Archax's strategic growth to embrace innovations in the tokenization of real-world assets (RWAs). In addition, Archax confirmed intentions to potentially incorporate other fund types in the future.

Recent reports highlighted that Legal & General is actively entering the tokenization market, aligning with a growing trend as traditional finance entities explore blockchain technologies. Other major finance firms such as BlackRock and Franklin Templeton have also made strides in launching tokenized funds, showcasing the increasing interest in this sector.

Graham Rodford, Archax's CEO, commented, "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."

Archax is also in the process of acquiring King & Shaxson Capital Markets, reinforcing its market position as regulatory approval is anticipated.