Abbrdn, a $600 billion investment giant, has tokenised its USD, EUR and GBP money market funds in partnership with Archax exchange, all on the Hedera blockchain network.
The UK firm says tokenisation is the future of asset management, citing benefits such as asset fractionalisation, instant transfer and settlement and portfolio flexibility.
Abrdn, a global asset manager based in Edinburgh, is backing tokenisation as the future of asset management. This week, it announced that three of its market funds are now available as tokens, all on the Hedera blockchain.
Duncan Moir, Abrdn’s senior investment manager, was one of the speakers at the Crypto Assets Conference in Frankfurt. In his speech, he discussed tokenisation and its impact on finance. He also announced the company’s progress, including listing its tokenised funds as it seeks to leverage the Hedera network to stay ahead of its rivals.
Moir noted that the company, which manages over $617 billion in assets, believes tokenisation could help it make its clients better investors. This is because tokenisation “can be used to improve investor access to a wider range of investment opportunities while improving liquidity and transparency, and reducing operational cost.”
Moir listed several benefits, including enabling the assets held in a fund to trade more cheaply and transparently. Tokenisation also offers cost savings and operational efficiencies that ultimately benefit investors. Enhanced risk management and faster settlement times are other benefits of tokenised funds.
By digitising funds on the blockchain, it opens up access to assets that most investors would have previously been unable to access. This is critical for the private markets as their assets are not listed on public platforms. Previously, these assets were illiquid and required massive investment to venture into, making them a preserve of the institutions. Tokenisation changes all this and democratises opportunities, Moir told the attendees.
Abrdn Partnersh Archax and Hedera to Tokenise its Funds
Moir used his speech to announce that Abrdn had leveraged Hedera to tokenise some of its funds. He stated:
Currently, our US dollar, euro and sterling money-market funds are available in token form via Archax, the UK regulated digital securities venue. Eligible investors can benefit from real-time transfers and enjoy income that is “airdropped” to investor accounts as new tokens. We expect to significantly expand the range of tokenized access to our funds.
Tokenisation is a critical application of blockchain. Some studies suggest the sector will be worth $4 trillion by 2030. This has seen some of the world’s largest financial companies rush to invest in tokenising their assets, from BlackRock and Fidelity to Citibank and HSBC. Abrdn is joining this elite group, and it has selected Hedera as its network of choice.
Moir commented:
By partnering with Hedera, we can make previously restricted asset classes accessible to a wider range of investors. This aligns perfectly with our commitment to financial inclusion and creating a more equitable investment landscape.
The announcement is the latest instance of Hedera being used to power real-world applications. As Crypto News Flash reported, the network is now being leveraged in CBDCs, the $11 trillion travel industry, stablecoins, digital identity and more.
Meanwhile, Hedera’s HBAR trades at $0.08028, gaining marginally over the past day.
