tokenization
Tokenization is the process of converting ownership rights to a tangible or intangible asset into a digital token on a blockchain. This digital representation of an asset allows for the creation of new financial instruments that can be traded, bought, and sold on a global market, 24/7.
Tokenization has the potential to revolutionize the way assets are owned and traded. By converting assets into digital tokens, the barriers to entry for investing are significantly lowered, making it easier for individuals to access a wider range of investment opportunities.
Additionally, tokenization enables fractional ownership of assets, making it possible for individuals to invest in assets that were previously out of reach due to high costs.
The use of blockchain technology in tokenization increases the efficiency, security, and transparency of the asset trading process. Transactions are faster and cheaper than traditional methods, and the use of smart contracts allows for the automated execution of trades and the enforcement of rules and regulations.
Tokenization represents a fundamental shift in the way assets are owned and traded, providing new opportunities for investment and increased efficiency, security, and transparency in the asset trading process.
For more information, visit: wikipedia Tokenization
benefits of tokenization
- fractional asset ownership
- peer-to-peer asset trading
- end-to-end asset traceability
- compliance
- smart contract-based automation
- automated recordkeeping
list of what is being tokenized
- real estate tokenization
- stocks and other financial securities tokenization
- intellectual property tokenization
- physical commodities tokenization
- precious stones tokenization
- artwork and collectibles tokenization
- medicines tokenization
- tickets tokenization
- in-game assets tokenization
Tokenization as a Service
Here are five companies that compete in the real-world asset (RWA) tokenization space alongside Archax, each playing a significant role in transforming how assets are digitized and traded using blockchain technology:
Securitize
Based in the U.S., Securitize is a leading player in the tokenization of financial assets, offering an end-to-end platform for issuing, managing, and trading security tokens. It’s SEC-registered and focuses on compliance, enabling businesses to tokenize assets like real estate, private equity, and funds. Its partnership with BlackRock to tokenize a $10 trillion asset portfolio highlights its institutional focus and scalability.
Tokeny
Headquartered in Luxembourg, Tokeny provides a blockchain-based platform for tokenizing assets such as securities, real estate, and intellectual property. Known for its strong emphasis on regulatory compliance, Tokeny serves clients globally and integrates with major blockchains like Ethereum. It’s a go-to for businesses seeking efficient, legally sound tokenization solutions.
Polymath
Polymath, based in Canada, specializes in creating and managing security tokens with its Polymesh blockchain, designed specifically for regulated assets. It simplifies the tokenization process for assets like stocks and bonds, offering tools for governance, identity verification, and compliance, making it a strong competitor in the institutional space.
Harbor
A U.S.-based firm, Harbor focuses on tokenizing real estate, private equity, and investment funds. It provides a comprehensive platform that ensures compliance with securities laws, offering services from token issuance to trading. Harbor has gained traction for enabling fractional ownership in high-value assets, appealing to both issuers and investors.
Ondo Finance
Ondo Finance, also U.S.-based, bridges traditional finance and DeFi by tokenizing assets like U.S. Treasuries and real estate. Its innovative products, such as tokenized U.S. Treasury offerings, cater to both institutional and retail investors. Ondo’s integration with DeFi protocols sets it apart, enhancing liquidity and accessibility in the tokenized asset market.
Archax
Archax is a London-based, innovative financial technology company focused on bridging the gap between traditional finance and the blockchain-driven digital asset ecosystem. Established in 2018 by founders with deep roots in traditional capital markets, including experience from institutions like Barclays and HSBC, Archax has positioned itself as a pioneer in the tokenization of real-world assets (RWAs). It stands out as the first firm to receive authorization from the UK’s Financial Conduct Authority (FCA) as a regulated digital securities exchange, broker, and custodian, a milestone achieved in 2020. This regulatory approval, along with its listing on the FCA’s Cryptoasset Register as a Virtual Asset Service Provider (VASP), underscores its commitment to operating within a compliant and transparent framework, making it a trusted partner for institutional investors.
The company specializes in tokenizing a wide range of assets, including traditional financial instruments like equities, bonds, and money market funds, as well as other asset classes such as treasury instruments and carbon credits. By leveraging blockchain technology, Archax transforms these assets into digital tokens, enabling benefits like fractional ownership, increased liquidity, and 24/7 global trading. Its tokenization engine, launched in 2023, allows for the creation of tokens backed by both regulated and unregulated assets, starting with blue-chip UK equities and funds, and expanding into broader offerings. This process not only enhances efficiency but also opens up new opportunities for investors, such as using tokenized assets as collateral in decentralized finance (DeFi) applications.
Archax collaborates with leading blockchain networks, including Hedera, XDC Network, Ripple (XRPL), Algorand, Ethereum, and Arbitrum, to ensure interoperability and flexibility for its clients. Notable partnerships include working with major financial players like abrdn, BlackRock, State Street, Fidelity International, and Legal & General Investment Management to tokenize money market funds, which provide yield-bearing instruments for both traditional finance and crypto markets. For instance, Archax tokenized abrdn’s flagship multi-billion-pound money market fund and later expanded its offerings with BlackRock’s ICS US Treasury fund, demonstrating its ability to handle institutional-grade assets.
Backed by a $28.5 million Series A funding round led by abrdn in 2022, Archax has built a robust infrastructure tailored for institutional needs. Its platform integrates proven, high-performance exchange technology with secure custody solutions, including multi-signature wallets and cold storage, all hosted in top-tier data centers. This setup ensures resilience, scalability, and seamless integration into existing institutional workflows. Beyond tokenization, Archax offers brokerage and custody services, positioning itself as a comprehensive ecosystem for digital asset trading and management.
At its core, Archax aims to drive the convergence of traditional finance (TradFi) and decentralized finance (DeFi), offering a regulated gateway for institutions to engage with the tokenized economy. Its efforts have been recognized industry-wide, with projections like Standard Chartered’s estimate of a $30.1 trillion tokenized RWA market by 2034 reflecting the scale of the opportunity Archax is tapping into. Through its blend of regulatory credibility, technological innovation, and strategic partnerships, Archax is redefining how financial assets are created, traded, and managed in the digital age.