Archax, a custodian focusing on UK-regulated crypto exchanges and tokenized assets, has acquired US broker-dealer to enter the booming institutional market in the country after a recent positive change in the regulatory environment.
Globacap Private Markets Inc, a broker-dealer and alternative trading system (ATS), regulated by FINRA and the Securities and Exchange Commission (SEC), was purchased by Archax and has been renamed Archax Markets Us.
The new entity will serve as a company’s foothold against American soil and serve national institutions and professional investors, two Archax executives told Coindesk.
Asset tokenization is a fast-growing sector in crypto as global banks, asset managers and digital asset companies increasingly use blockchain rails to move traditional financial products. They do so to quickly achieve operational efficiency and 24-hour residence.
Over the past few weeks, asset manager Fidelity Investments has filed to launch a tokenized money market fund, reportedly working on issuing Stablecoin.
Derivatives Exchange CME Group has launched tokenization testing on Google Cloud with plans to launch a new service next year. Meanwhile, the parent company of the New York Stock Exchange has partnered with Circle to explore services based on USDC Stablecoin and tokenization fund USYC.
Archax specializes in the issuance, custody and trading of tokenized real-world assets (RWAs), including money market funds, corporate debt, carbon credits, and uranium. For example, Archax’s recently issued XRP Ledger’s recently issued Token Treasury Asset Manager Abrdn has seen a $45 million deposit and has become the top 10 product by managed assets, data from RWA.xyz shows.
Archax has been exploring its entry into the US market for the past few years, but has remained on the sidelines due to regulatory uncertainty, Archax CEO Graham Rodford said in an interview with Coindesk.
“Under this new administration, it seems more positive about the code, but we are also attracting more attention from the US, which clearly cannot be easily served from the UK.
Archax will also expand its offering to tokenize US stocks and bonds based on existing partnerships across several blockchains, including Ethereum, Polygon, Solana, Hedera Hashgraph and XRP Ledger.
The company’s US entrance follows the recent purchases of Spanish brokerages to pending regulatory approval and expand services to the European Union.
