Today the UK digital asset exchange Archax unveiled its Pool Tokens that represent a portfolio of other tokenized funds. Its first Pool Token will be issued on the Hedera DLT network and involve equal amounts of tokenized money market funds from Aberdeen, BlackRock, State Street and Legal & General.
Until now almost all fund tokenization has involved tokenizing the fund itself. But for years there’s been discussion about tokenizing the assets within a fund’s portfolio. One of the biggest proponents of this approach has been Adam Belding, CTO of fund distribution platform Calastone. This enables far greater efficiencies and the opportunity to enable portfolio personalization. It also harnesses a key feature of blockchain – composability.
“This represents the launch of unprecedented flexibility in portfolio build and fund creation on-chain,” said Graham Rodford, Archax co-founder and CEO. “By enabling the creation of Pool Tokens, an issuer could come to us to create a natively on-chain portfolio, basket, index or fund. Tokenised portfolios can be assembled, transferred, and managed with speed and flexibility, so we’re eliminating the operational inefficiencies that have long plagued traditional investment structures – all while maintaining regulatory compliance and institutional-grade security.”
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