Archax, a digital securities exchange and custodian regulated by the Financial Conduct Authority, has partnered with layer-1 blockchain XDC Network to drive the adoption of tokenized real-world assets

The collaboration, announced on Dec. 5, aims to leverage regulated digital assets and blockchain technology to make tokenized RWAs accessible to financial institutions. Archax and XDC Network (XDC) emphasized ease of access and compliance as critical factors in unlocking the potential of RWA tokenization for institutional players, according to a blog post.

Keith O’Callaghan, head of structuring at Archax, commented:

“Innovation and evolution of digital assets has been at our core since inception. The underlying blockchain DLT technology and tokenization are set to reshape traditional financial markets by creating an entirely new set of financial and trading instruments.”

The partnership comes during a period of significant growth for the tokenized RWA market. Blockchain and traditional finance companies have increasingly moved real-world assets on-chain, with major players like BlackRock already involved.

As institutional-grade decentralized finance gains traction, Standard Chartered has projected the tokenized RWA industry to reach $30 trillion by 2034.

In June 2024, Ripple and Archax teamed up on a tokenization project aimed at bringing millions of dollars in tokenized RWAs on-chain via the XRP Ledger. In November, the platform announced it had added State Street, Fidelity International and Legal & General Investment Management funds to its tokenized RWA offerings.