Archax, the only FCA-regulated digital asset exchange, broker, and custodian, today announced the introduction of its Stablecoin Yield Service.
This service enables individuals with assets in stablecoins to transition them into yield-generating instruments, such as regulated Money Market Funds (MMFs), which are also available in tokenised form.
In the current high-interest market environment, investors with assets in passive stablecoins are missing out on potential yields from utilising those assets-especially as holding stablecoins often becomes the default option when going “risk off” from crypto trading. Many investors, however, wish to maintain immediate access to their assets, making traditional interest-bearing bank accounts less appealing.
Archax offers a variety of MMFs from leading asset managers, allowing users to effortlessly transfer their stablecoin holdings into regulated, yield-bearing instruments. This solution is particularly appealing as it eliminates the single counterparty risk associated with banks and stablecoin issuers.
Graham Rodford, CEO and co-founder of Archax, comments: "By leveraging our regulated digital asset status along with our cryptocurrency permissions, we are uniquely positioned to offer innovative services that bridge the gap between traditional and digital financial products. These yield-bearing instruments provide a compelling alternative from the current stablecoin asset holding strategies. Once tokenised, they can serve as a form of 'currency' for transfers or as collateral for borrowing and lending. This is a clear demonstration of how blockchain and tokenisation are set to transform and modernise traditional financial market structures."