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Archax launches ‘digitally native’ post-trade service for tokenisation

Blockchain3UK-based digital assets exchange and custodian Archax has launched a new subsidiary to cater for the growing tokenised assets market.

The new business, Montis Digital, is currently developing a blockchain-based, post-trade infrastructure which it claims will allow security tokens  and digital securities to “realise their full potential”.

Tokenised assets are widely considered to have more long-term appeal to institutional investors because the majority of these assets fall under securities regulation.

However, there is currently a lack of digitally-native central securities depositaries and other post-trade bodies.

This issue was cited in a recent FundsTech webinar on digital assets by Luke Dorney, head of sales & partnerships, at digital custodian Zodia Custody.

“Tokenisation of real assets has benefits in terms of liquidity and operational efficiency for institutional investors but it is still at the proof of concept stage and there is no established market infrastructure as yet,” said Dorney.

According to Graham Rodford, Archax Group chief executive:  "The potential benefits of using blockchain technology in financial markets are particularly relevant in the post-trade space, where currently there are many intermediaries involved and the whole process can be time consuming and inefficient.

“Blockchain based post-trade infrastructure can reduce settlement times, remove friction, improve efficiency and lower costs.”

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