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First tokenised money market fund launched on Algorand

Thursday 27 June 2024 14:26 CET | News

The Algorand Foundation, Archax, abrdn, and Quantoz Payments have announced the launch of the first tokenised money market fund on Algorand.

 

Archax issued tokenised interests in abrdn’s EUR 3.8 billion Euro Money Market fund. The integration between Quantoz Payments and Archax facilitates the use of EURD electronic money on the Archax digital assets platform. This enables native ‘no-code’ atomic settlement of EURD/fund tokens in peer-to-peer secondary market transactions, allowing for instant execution of interdependent transactions in a predefined order.

By combining tokenised assets, on-chain digital money, and native atomic settlement, the collaboration demonstrates the feasibility and efficiency of conducting end-to-end investment and cash settlement processes on-chain, encompassing investment, asset transfer, trading, settlement, and distributions.

Details about EURD and Archax integration

EURD, a programmable European Union digital euro, is issued on Algorand by Quantoz Payments, an Electronic Money Institution authorized and regulated by the Dutch Central Bank. EURD issuance is backed by a 102% surplus of high-quality liquid assets held in a bankruptcy-remote foundation, Stichting Quantoz. EURD can be created via the SEPA payment network, with holders having the right to redeem at par value at any time.

 

Archax, based in London, is the first firm authorized by the UK Financial Conduct Authority (FCA) as a digital securities exchange, custodian, and brokerage, and the first to be listed on the regulator’s Cryptoasset Register. Archax can purchase and hold fund units in a bankruptcy-remote trust, issue Algorand Standard Asset tokens representing beneficial ownership of the underlying fund units, and monitor the Algorand blockchain for peer-to-peer transfers and ownership changes. Through its integration with Quantoz, Archax can accept, distribute, and redeem EURD, facilitating various financial operations.

Tokenised products and atomic swaps

Qualified investors can invest in, custody, and trade tokenised products on Archax’s digital assets platform, including abrdn’s money market funds. Transfers of tokens issued by Archax are restricted to wallets whitelisted by Archax to comply with AML and regulatory requirements.

The Algorand blockchain’s atomic swap functionality enables the controlled exchange of assets only if all parties meet their obligations, without the need for smart contract programming. This feature allows for the execution of group transactions without counterparty risk and with precise transaction ordering, enforced by consensus. Additionally, Algorand’s instant finality ensures that transactions are final once a new block is created, typically within three seconds.


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Keywords: tokenization, blockchain, digital assets, growth markets, digital currency, EMI licence
Categories: DeFi & Crypto & Web3
Companies: abrdn, Algorand, Archa, Quantoz Payments
Countries: World
This article is part of category

DeFi & Crypto & Web3

abrdn

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Algorand

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Archa

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Quantoz Payments

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