XDC Network Launches Four Tokenized Funds With Archax

Enterprise-grade Layer-1 blockchain XDC Network has partnered with Archax, one of the FCA-regulated digital asset exchanges. Together,  they launched four major Money Market Fund (MMF) tokens, tapping into the growing demand for more investment vehicles amongst institutional investors. 

Institutional Investors Demands Spurs XDC Network’s MMF Launch

According to XDC Network’s announcement on Monday, these are its first tokenized funds. Notably, the MMFs are from abrdn, Fidelity International, BlackRock, and State Street and are now available on the XDC Network platform. XDC Network and Archax are keen to expand institutional investors’ access to Traditional Finance (TradFi) through blockchain technology. 

Keith O’Callaghan, the Head of Asset Management and Structuring at Archax, opines, “Providing digital representations of major MMFs opens up a potential new audience for these types of yield-bearing products that historically have been challenging for some to access.” 

RWA Tokenization and What XDC Network Brings to the Table

XDC’s Proof-of-Stake (PoS) consensus mechanism will be utilized as part of the strategic partnership. 

This will facilitate transaction settlement and maintain near-zero gas fees. It is worth noting that this blockchain platform boasts of being the ideal protocol for Real-world Asset (RWA) tokenization, especially for institutions that wish to work with regulated entities like Archax.

There is a general rise in the demand for tokenized MMFs amongst institutional investors. This is highly reflected in the RWA tokenization market’s financial value and current outlook. In the first week of February, the RWA tokenization market hit a record Total Value Locked (TVL) of $17.1 billion. 

Explicitly, this caused it to reach levels last seen in mid-January.

Projection For RWA Tokenization Market 

In its paper “Real-world asset tokenization: A game changer for global trade,” Standard Chartered hinted that the tokenized RWA market could grow to $30.1 trillion by 2034. 

This forecast is not far-fetched, especially if the suggestion of Eli Cohen, general counsel at Centrifuge, comes into play.

Cohen stated that US President Donald Trump’s administration will likely pull away from restrictive financial policies. In his opinion, such moves hold potential for RWA tokenization in 2025, as it would further boost the sector’s growth.