First synthetic pool token will represent a basket of money market funds from leading asset managers
Archax, the UK-regulated digital asset exchange, custodian, and brokerage with European Exchange permissions, announced the launch of its innovative Pool Token functionality on the Hedera Network. This new feature allows institutional investors to create on-chain, multi-asset portfolios or baskets by combining a range of already tokenized assets into a single transferable token.
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The underlying assets can be highly diverse including equities, debt, funds, and cryptocurrencies giving investors the freedom to express complex strategies in one digital instrument. The first Pool Token on Hedera will contain equal parts of money market funds from Aberdeen, BlackRock, State Street, and Legal & General, creating a fully digital “fund of money market funds.” This marks a significant milestone in the digital transformation of financial markets, offering unmatched flexibility in portfolio construction and management.
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Pool Tokens rethink traditional mutual funds, ETFs, and baskets by allowing investors to hold both the pooled token and its underlying assets simultaneously. They support real-time portfolio assembly, instant settlement, and reduced intermediary friction, increasing efficiency while maintaining institutional-grade security.
“This launch represents unprecedented flexibility for on-chain portfolio creation,” said Graham Rodford, Archax co-founder and CEO. “Issuers can now create natively digital portfolios, baskets, indexes, or funds that can be assembled, transferred, and managed quickly, eliminating operational inefficiencies that have long challenged traditional structures.”
Applications extend beyond money market funds to include funds of funds, ETPs, indices, structured products, and other asset pools, unlocking financial engineering possibilities that were previously impossible.
Key benefits of Pool Tokens include:
Instant Fund Creation: Mint a token that holds a variety of underlying assets, each accessible individually.
Seamless Transfers & Composability: Move entire portfolios across platforms in seconds without paperwork or transfer agents.
Collateral Use: Pool Tokens can be used as regulated digital collateral through Archax’s Nest network, enabling near-instant settlement.
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Structured Products: Combine low-risk instruments with higher-risk assets like cryptocurrencies in a single token.
Archax’s tokenization platform supports a wide range of Pool Token structures, from equity and commodity baskets to real-world asset pools, empowering institutional investors to unlock liquidity, flexibility, and efficiency in ways traditional markets could not.
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