Archax (the digital asset exchange, broker, and custodian regulated by the Financial Conduct Authority) has announced plans to enable investors to pair cryptocurrencies with tokenized money market fund (MMF) instruments. The company stated that this move aims to enhance the security and stability of crypto investments and create new opportunities for generating profits in the crypto space.

Graham Rodford, the CEO and Co-Founder of Archax, said: "The problems that crypto markets have experienced over the last 18 months highlight the need for as much regulated cover as possible when trading, and the banking crisis earlier this year means minimising counterparty risk is hugely important too."

Bridging Regulated Money Markets and Crypto

Traditionally, most cryptocurrency exchanges offer trading pairs against fiat currencies, such as the US dollar or stablecoins. However, this setup often forces investors to hold their assets in unregulated instruments, earning no yields and exposing them to single counterparty risks, typically associated with banks or stablecoin issuers.

Archax's crypto/MMF pairs will be accessible on the exchange and custodial platform and will include a wide range of leading cryptocurrency coins. Notably, these tokenized MMF instruments will serve as a 'currency' for trading against other regulated digital and traditional assets on the Archax exchange.

Archax announces crypto/money-market-fund trading pairs!

Facilitates regulated trading against #cryptocurrencies.https://t.co/1g8dfXgXNg

Capital at risk

— Archax (@ArchaxEx) October 10, 2023

In August, the London-based institutional crypto exchange outlined plans to expand its offerings with Solana and Litecoin. The platform also announced support for trading pairs against USDC and GBP. Initially, Archax offered trading pairs for Bitcoin and Ethereum against the US dollar.

Archax's Suite of Services

Despite being a relatively new entrant in the crypto market, Archax has already made significant strides. In July, the company introduced a crypto custodian service, a primary issuance service, and a tokenization engine aimed at supporting start-ups and early-stage businesses in raising capital.

Archax's foray into the institutional crypto landscape followed the introduction of its insolvency remote custody offering, with both platforms complementing each other's services. To facilitate its expansion and product development efforts, the company successfully raised $28.5 million in funding last year.

The exchange's approach, which includes custody of digital assets, traditional securities, and fiat assets, along with access to its crypto exchange and over-the-counter services, has positioned Archax as an important platform for clients seeking safe and efficient navigation of the digital asset landscape.