XDC Network is a business-class, permissionless, hybrid blockchain aiming to redefine trade finance and the tokenization of RWAs (real-world assets). On the other hand, Archax is an institutional-focused exchange designed for trading asset-backed tokens like security tokens, digital securities, and many more.
The collaboration of these two firms represents a significant move to bridge traditional finance with the Web3 landscape, especially in the sector of RWA tokenization and compliant digital securities.
XDC Launches Tokenized Products on Archax
With this partnership, XDC Network has integrated its business-class blockchain architecture for custody, trading, and issuance of tokenized assets on Archax’s regulated institutional-focused digital asset exchange.
XDC network’s blockchain will function as the underlying infrastructure for the digital representation and transfer of assets. On the other hand, Archax offers a regulated marketplace and essential financial services to attract traditional institutional investors to trade real-world assets.
This partnership allows for seamless and affordable tokenization of RWAs like money market funds, etc., allowing such assets to be traded as digital securities on Archax.
Driving Adoption of Tokenized Assets
The partnership between XDC Network and Archax is a significant step towards advancing the utility of Web3. First, it aims to expand institutional adoption of real-world assets and advance compliance of these assets.
The collaboration’s focus on introducing a MiCA-Complaint whitepaper is crucial. MiCA is a stringent regulatory framework in the European Union region. Complying with its strict legal standards is paramount for attracting mainstream institutions to adopt tokenized assets. By focusing on this compliance, Archax and XDC resolve one of the greatest obstacles for traditional financial companies moving into the Web3 landscape – regulatory uncertainty.
Also, this alliance substantially expands the adoption of tokenized products. By creating a regulated and seamless gateway for firms to tokenize products, including various conventional investment products, the collaboration opens up new markets for illiquid resources.
Lastly, with this collaboration, the two firms are establishing a strong, regulated ecosystem where institutions can easily interact with digital assets, promoting wider adoption and redefining international investment markets.
