Scottish wealth management firm abrdn has finalised a deal to become the largest external shareholder in Archax, a UK-based regulated digital assets exchange.
Established in 2018, Archax helps institutional investors gain access to blockchain-based digital assets, claiming to act as a “bridge” to traditional capital markets. It is set to launch later this year.
Archax says it is the “first and only” digital securities exchange to have received approval from the Financial Conduct Authority (FCA) with permissions for trading, custody and brokerage.
Through its stake in Archax, abrdn aims to provide new investment opportunities through digital securities to its customers.
“Blockchain technologies are inevitably going to form a big part of the future of financial markets. There is the potential to offer greater transparency, greater speed and less trading friction by using these nascent digital technologies,” says Stephen Bird, CEO of abrdn.
“With Archax, we will have a meaningful footprint in this fast-developing market – which is likely to evolve in a multitude of different ways that are relevant to our core businesses.”
The news follows a pre-tax loss of £320 million in H1 2022 for the Edinburgh-based firm, citing global economic challenges.
Image and article originally from www.fintechfutures.com. Read the original article here.