• Archax launched Pool Token functionality on Hedera, enabling multi-asset tokenised portfolios.
• The first token basket includes Aberdeen, BlackRock, State Street, and Legal & General funds.
• This innovation allows instant settlement, flexible portfolio management, and broader collateral use.

Archax, the UK-regulated digital asset exchange and custodian, announced the launch of its Pool Token functionality on the Hedera Network. This new feature enables the creation of on-chain multi-asset portfolios in the form of a single transferable token.

It is a watershed in the digitisation of the financial markets, where traditional investment models are transformed in a quicker and more flexible format.

The first Pool Token to be introduced under the system shall consist of evenly weighted holdings in money market funds from four major world managers, i.e., Aberdeen, BlackRock, State Street, and Legal & General.

This digital structure creates a modern version of a “fund of funds” but with the added efficiency of tokenisation. By grouping assets into one digital token, Archax provides institutional investors with more streamlined tools for building and managing portfolios.

Archax’s CEO, Graham Rodford, said:

This represents the launch of unprecedented flexibility in portfolio build and fund creation on-chain. By enabling the creation of Pool Tokens, an issuer could come to us to create a natively on-chain portfolio, basket, index, or fund.

Pool Tokens Offer a New Alternative to Mutual Funds and ETFs

Pool Token system is distinctive in duplicating and scaling exchange-traded funds, mutual funds, and investment baskets. While in most models, investment is only made in the pooled vehicle, Pool Tokens offer investment in both assets themselves and in the pooled vehicle, hence augmenting flexibility.

Another key benefit is real-time settlement. Classic funds transfers mean weeks of paperwork and third-party intermediaries. Pool Tokens, on the other hand, facilitate real-time transfers from one platform to another, with no intermediaries and low market frictions.

Archax also designed its Nest network such that Pool Tokens may be used as collateral in transactions between institutional counterparties. It offers possibilities for near-instant settlement in collateralised markets while reducing reliance on intermediaries.

Archax Demonstrates Tokenised Assets as Collateral

Pool Tokens are much more versatile in their use cases than money market funds. They can represent any blend of low-risk assets like treasuries and high-risk assets like cryptocurrencies. Such a flexibility opens up an entire universe of opportunities for structured products, indices, and funds of funds.

Archax had already demonstrated cases where tokenized assets had been utilized successfully as collateral, such as those involving Lloyds Banking Group, Aberdeen Investments, and affiliated entities. To extend such a mechanism to Pool Tokens, Archax solidifies its leadership in tokenisation of institutional-grade.

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