XDC Network & Archax Launch Tokenized MMFs for Institutional Investors

XDC Network, a leading enterprise-grade Layer-1 blockchain, has partnered with Archax, a FCA-regulated digital asset exchange, to launch four major Money Market Fund (MMF) tokens. This strategic move aims to tap into the growing demand for investment vehicles among institutional investors.

The MMFs, from prominent financial institutions such as abrdn, Fidelity International, BlackRock, and State Street, are now available on the XDC Network platform. This collaboration seeks to expand institutional investors' access to Traditional Finance (TradFi) through blockchain technology.

Keith O’Callaghan, the Head of Asset Management and Structuring at Archax, believes that providing digital representations of major MMFs opens up a potential new audience for these yield-bearing products, which have historically been challenging for some to access.

XDC Network's Proof-of-Stake (PoS) consensus mechanism will be utilized as part of the strategic partnership. This will facilitate transaction settlement and maintain near-zero gas fees. The blockchain platform is recognized as the ideal protocol for Real-world Asset (RWA) tokenization, particularly for institutions working with regulated entities like Archax.

The demand for tokenized MMFs among institutional investors has been on the rise, as reflected in the RWA tokenization market's financial value and current outlook. In early February, the RWA tokenization market hit a record Total Value Locked (TVL) of $17.1 billion, reaching levels last seen in mid-January.

Standard Chartered, in its paper "Real-world asset tokenization: A game changer for global trade," projected that the tokenized RWA market could grow to $30.1 trillion by 2034. This forecast is supported by the suggestion of Eli Cohen, general counsel at Centrifuge, who believes that a shift in US financial policies could further boost the sector's growth in 2025.