Archax, a UK-regulated digital asset exchange, has announced the launch of its Pool Token functionality on the Hedera platform. This solution represents an innovative means for creating tokenized multi-asset portfolios in digital investment management.
What is Pool Token?
The first Pool Token on Hedera will consist of equal allocations from money market funds from Aberdeen, BlackRock, State Street, and Legal & General. This creates a digital version of a 'fund of funds', allowing institutional investors to diversify their investments with a single transferable token.
Advantages of the New Functionality
Unlike traditional mutual funds or ETFs, Pool Tokens allow investors to simultaneously hold both the composite token and its underlying assets. This model enables the fast assembly of portfolios, instant settlement, and reduces friction associated with intermediaries. Archax co-founder and CEO Graham Rodford highlighted the importance of this launch for financial markets.
Use Cases for Pool Token
Beyond money market funds, Pool Tokens can represent various assets such as equities, debt instruments, commodities, structured products, and indices. The model's composability allows investors to merge, separate, or reallocate their holdings, opening new opportunities for financial engineering.
The launch of Pool Token on Hedera by Archax offers significant advantages for institutional investors, including the ability to work quickly and efficiently with tokenized assets. This event enhances the infrastructure of digital investments and expands the field for innovations.
