Abrdn, one of the largest asset management companies, has invested in Archax, the first licensed cryptoasset company in the United Kingdom. However, information regarding the investment’s transaction value remains unavailable. Company documents indicate that Abrdn will surpass all other external shareholders as Archax’s single largest external shareholder. This is the most recent instance of traditional banking institutions getting on board with cryptocurrencies.
What informed the decision?
Although it does not have a comprehensive cryptoasset regulatory framework, the United Kingdom does keep an eye on crypto companies. This is in an effort to arrest financial fraud. Still, in 2020, Archax made history by becoming the first cryptoasset company to receive official authorization from the Financial Conduct Authority (FCA). Archax’s mission is to serve as a conduit between the blockchain and traditional finance. By doing this, it is able to allow institutional investors to have exposure to digital assets.
Mainstream financial institutions like Abrdn are increasingly showing interest in digital assets, as seen by their recent investment in Archax. Notable investment banks such as Goldman Sachs and JP Morgan have already rolled out their crypto plans. In addition, some companies have produced specialized digital products that are tailored specifically to their clientele. When it comes to the same-day settlement of digital and tokenized securities, Archax is one of the most prominent UK participants.
The statement by Archax follows a similar one by the largest asset manager in the world, BlackRock, which launched a spot bitcoin private trust for its institutional clients in the United States a few days ago. Abrdn, which has $564 million in assets under management (AUM), may now provide its investors with access to digital securities investment via Archax thanks to this partnership. The collaboration will also help Abrdn strengthen its position in the dynamic market. Abrdn CEO Stephen Bird forecasts many ways in which the growing market will benefit the firm’s operations.