- Archax has introduced Pool Token functionality on the Hedera Network.
- It allows institutional investors to create on-chain, multi-asset portfolios represented by a single token.
- The first Pool Token is a digital fund of money market funds, equally weighted across Aberdeen, BlackRock, State Street, and Legal & General.
Archax has launched Pool Token functionality on the Hedera Network, enabling institutional investors to create on-chain, multi-asset portfolios represented by a single token.
The first Pool Token minted under this framework holds equal allocations of money market funds from Aberdeen, BlackRock, State Street, and Legal & General. This effectively creates a natively digital “fund of money market funds.”
The innovation aims to modernize collective investment vehicles such as mutual funds, baskets, and ETFs, bringing them closer to the efficiency and composability of decentralized finance (DeFi).
By placing tokenized assets into a single transferable token, Archax allows real-time portfolio assembly with instant settlement and fewer intermediaries.
“This launch represents unprecedented flexibility in portfolio build and fund creation on-chain,” said Graham Rodford, Archax co-founder and CEO.
“Tokenised portfolios can be assembled, transferred, and managed with speed and flexibility, eliminating operational inefficiencies that have long plagued traditional investment structures — all while maintaining regulatory compliance and institutional-grade security,” Graham added.
Beyond Traditional Baskets
The ability to combine diverse asset types — equities, debt instruments, funds, and cryptocurrencies — in a single, programmable token opens new possibilities for institutional portfolio construction. Issuers can mint tokens representing indices, structured products, or funds of funds, with the added ability to separate or recombine constituent assets as needed.
This composability could transform structured finance and asset management, allowing products to be customized dynamically to meet changing investor mandates or risk profiles. Entire portfolios could be migrated across platforms in seconds, bypassing the need for transfer agents or complex settlement processes.
Institutional-Grade Collateral Use
Archax’s Nest network is designed to support the use of regulated digital assets as collateral, and Pool Tokens are no exception. The tokens can be used for near-instant settlement between institutional counterparties, potentially unlocking liquidity in traditionally rigid markets such as money market funds or bond baskets.
Recent pilots involving Lloyds Banking Group, Aberdeen Investments, and Archax itself have demonstrated that tokenized real-world assets can function as high-quality collateral in live transactions — a critical step toward broader institutional adoption.
Expanding the Tokenized Asset Universe
While the debut product focuses on money market funds, the technology is not limited to low-risk instruments. Pool Tokens can combine safe-haven assets with riskier components such as cryptocurrencies, creating hybrid structured products that were previously cumbersome to engineer.
This innovation comes amid growing demand for tokenization solutions. Boston Consulting Group estimates that tokenized assets could represent $16 trillion of value by 2030, with fixed income and fund products among the fastest-growing categories.
Archax’s move signals that the digital transformation of capital markets is accelerating beyond single-asset tokenization toward multi-asset, composable structures. For institutional investors seeking efficiency and flexibility, Pool Tokens could represent the next phase of programmable finance.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice.
