Banking Investment News

Institutional digital exchange Archax selects R3’s Corda

exchange

Today, London-based Archax announced that it has chosen R3’s Corda blockchain platform for post-trade processing. Archax is a digital asset exchange for institutions, enabling the trade of tokenized securities and other assets.

Founded last year by former officers at hedge fund Omni Partners, the exchange aims to bridge the gap between blockchain-powered tokenization and traditional investment. It has applied to the UK Financial Conduct Authority (FCA) to run an officially regulated trading facility. Once the application is approved, the firm hopes the exchange will go live by the end of this year.

Graham Rodford, Archax’s CEO, said: “Our existing systems and partnerships with firms like Aquis, provide the core functionality for our exchange. R3, with its Corda product, provides the final piece of the puzzle on which we can build a truly revolutionary post-trade solution.”

Using the Corda enterprise platform, Archax aims to streamline post-trade. It already utilizes blockchain for security issuance and has partnerships with Alphabit, Custom House, Securitize, University College London, and Cryptonomy along with international exchange Aquis.

Cathy Minter, CRO of R3, stated: “Representing assets as tokens on a blockchain platform is one of the most impactful applications of the technology and a key focus for R3, too. Archax, with its experienced team and base in London, is building one of the most credible venues for these tokens and will play a key role in driving institutional adoption.”

Finance focused R3 was revealed yesterday to be a participant in a collateral tokenization trial, along with DBS, Natixis, and Raiffeisen Bank. Its platform Corda was behind this week’s reconciliation blockchain by the Italian Banker’s Association. CULedger, SIX, SWIFT and Infosys are also collaborators of R3. Meanwhile, Corda underpins the Marco Polo and Voltron trade finance networks and the UK Land Registry’s blockchain pilot.

Now the technology will be used by Archax. As Rodford summarized: “The current post-trade process in traditional financial markets is hugely inefficient, with many intermediaries involved. This partnership between R3 and Archax will enable us to revolutionise the current post-trade space, removing friction and streamlining activities to improve efficiency and reduce cost.”