Quick Breakdown
- First Pool Token: Backed by money market funds from Aberdeen, BlackRock, State Street, and Legal & General.
- Efficiency Boost: Enables instant fund creation, faster transfers, and composable investment structures.
- Institutional Integration: Supports collateralisation and structured products through Archax’s Nest network.
Archax, the UK-regulated digital asset exchange, custodian, and brokerage, has announced the launch of its Pool Token functionality on the Hedera network. The innovation allows tokenised multi-asset portfolios or baskets to be minted on-chain, representing a breakthrough in digital investment management.
A Digital ‘Fund of Funds’
The first Pool Token on Hedera will comprise equal allocations of money market funds from Aberdeen, BlackRock, State Street, and Legal & General. This creates a natively digital version of a “fund of money market funds,” enabling institutional investors to diversify within a single transferable token.
Redefining Collective Investment Vehicles
Unlike traditional mutual funds, ETFs, or baskets, Pool Tokens allow investors to simultaneously hold both the composite token and its underlying assets. This model introduces real-time portfolio assembly, instant settlement, and reduced intermediary friction, offering greater efficiency compared to legacy structures.
Archax co-founder and CEO Graham Rodford described the launch as a milestone for financial markets:
“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, all while maintaining regulatory compliance and institutional-grade security.”
Expanding Applications and Composability
Beyond money market funds, Pool Tokens can represent diverse assets such as equities, debt instruments, commodities, structured products, and indices. The model’s composability allows investors to merge, separate, or re-pool holdings, opening opportunities for innovative financial engineering.
Institutional Use Cases
Archax’s Nest network supports regulated digital assets as collateral between counterparties. Pool Tokens can be used in the same way, allowing for near-instant settlement and collateralisation in structured products or derivatives. Recent pilot cases with Lloyds Banking Group, Aberdeen Investments, and Archax highlight the transformative potential of tokenised collateral.
Archax also offers its tokenization platform in a white-label format, enabling institutions to create bespoke pool token structures, including fund pool tokens, equity baskets, and commodity pools. In 2024, Ripple Labs partnered with Archax to boost XRP Ledger’s position in real-world asset (RWA) tokenization.
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