Key facts
- Archax has launched a new system on the Hedera network for real-time yield payments on tokenized securities.
- Interest payments are distributed continuously in USDC, allowing yield to follow ownership in real time.
- The system supports applications like real-time coupon payments and revenue-sharing arrangements.
- Archax is a UK-regulated digital asset exchange and custodian.
- Financial institutions are increasingly tokenizing yield-bearing assets like money market funds.
Archax, a UK-regulated digital asset platform, has introduced a novel system on the Hedera network that facilitates real-time yield payments for tokenized securities. This innovation allows interest generated by these assets to be distributed continuously in USDC, moving beyond the traditional periodic payment structures. The system ensures that cash flows update automatically as tokenized securities change hands, effectively allowing yield to follow ownership in real time.
This development builds upon Archax's previous work, including the introduction of Pool Tokens on Hedera, which enable the bundling of multiple tokenized assets into a single on-chain instrument. Graham Rodford, CEO and co-founder of Archax, highlighted that while tokenization is a foundational step, real-time cash flows are crucial for tokenized assets to effectively support yield streams and enhance market efficiency.
The trend of bringing yield-bearing assets onto blockchain networks is gaining momentum. Financial institutions are increasingly exploring tokenized money market funds and Treasury funds. For instance, OKX integrated BlackRock's BUIDL tokenized Treasury fund into its collateral framework, and JPMorgan has filed to launch its own tokenized money market fund on Ethereum. According to Binance Research, the value of active tokenized real-world assets (RWAs) has seen a substantial increase, with tokenized bonds and money market funds contributing significantly to this growth.