Digital Asset Exchange Tokenises Stake In £16bn Abrdn Money Market Fund

abrdn said the development represented "a key milestone" in the firm's digital asset strategy. The Edinburgh-based asset manager became the largest external shareholder in Archax last year, citing the potential of tokenisation of assets as a key reason for purchasing a stake.

The tokens use the Hedera Hashgraph distributed ledger technology, which abrdn is a governing council member of.

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abrdn is currently working towards creating a tokenised strategy where digital tokens can be transferred, held and managed on chain.

The firm will then use this model "across a range of its investment capabilities", but in particular in private markets, as it explained the ability to fractionalise holdings and provide additional liquidity was "particularly attractive".

Russell Barlow, global head of alternatives at abrdn, said: "The focus of our digital asset strategy is on the developing, and long-term, opportunity we foresee as blockchain and other DLTs comes to play a central role in how markets function.

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"Our investment in Archax is a key part of this strategy because we believe that the future of financial markets lies with leveraging new technologies, such as Web 3.0 and DLT.

"It is exciting to see a tangible application of Archax's tokenisation engine working with Hedera and it paves the way for us to look at creating other digital, blockchain-based token investment solutions."

Stephen Bird, CEO of abrdn, added: "Today marks further progress for abrdn's digital asset strategy. The potential for assets to be traded via blockchain is significant and this is another step in putting abrdn at the forefront of this new offering."

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