First Mover Benefit Sought by Archax in Financial Sector Innovation
In a move to strengthen its position as a leading regulated digital asset exchange, Archax has recently acquired Deutsche Digital Assets (DDA), a digital asset manager based in Germany. This acquisition, announced in July 2025, has significantly expanded Archax's regulated footprint across Europe, particularly in the UK, Germany, France, and Spain [1][2].
The acquisition brings key regulatory licenses under Germany’s BaFin, including portfolio management, investment advisory, contract brokerage, and distribution permissions. This allows Archax to offer a comprehensive range of regulated digital asset products, including crypto exchange-traded products (ETPs) and tokenized real-world assets (RWAs) to institutional clients.
The DDA acquisition complements Archax’s 2023 purchase of Spanish broker KSCM and positions Archax as one of the most comprehensively licensed digital asset firms in Europe. It expands Archax’s access to Germany’s mature crypto ETP market alongside its UK and French operations, allowing it to serve professional investors with both native on-chain crypto via its regulated exchange and institutional-grade crypto ETPs through regulated advisory and distribution channels [1][2].
Tokenization Initiatives
In addition to acquisition-driven expansion, Archax is advancing its tokenization platform by preparing to offer tokenized institutional money market funds on blockchains like Hedera Hashgraph and Ethereum. Recent deployments of token contracts referencing major fund managers (e.g., BlackRock, Fidelity, abrdn) suggest Archax is developing a broader institutional integration for RWAs on-chain.
Archax is also part of landmark industry collaborations, such as with Aberdeen Investments and Lloyds Banking Group, involving the use of tokenized money market funds and UK gilts as collateral in financial trades. This collaboration resulted in a significant milestone - the FX transaction between Aberdeen and Lloyds Banking Group, where regulated digital assets served as collateral in the FX market [3][4].
Synergy with Deutsche Digital Assets
Maximilian Lautenschläger, managing partner at Deutsche Digital Assets, states that joining Archax creates synergy, particularly in attracting institutional investors from Germany, France, and Switzerland. The acquisition of DDA also allows Archax to gain EU regulatory permissions for advisory, distribution, portfolio management, and contract brokerage [1].
Emily Smart, chief product officer at Aberdeen Investments, also notes that the use of digital assets to streamline processes and increase efficiency demonstrates the potential of tokenization in digital innovation. Barnby, Archax’s CEO, mentions that other institutions are working on similar projects and that Lloyds Banking Group is exploring how to use tokenization in other use cases and scale it [3].
Future Plans
With these strategic acquisitions and pioneering tokenization initiatives, Archax is establishing itself as a leading regulated digital asset exchange and platform across Europe. The company plans to deepen institutional adoption of tokenized assets and is looking forward to setting up more operations in the U.S., viewing it as an exciting place for growth [2].
Consultancy Crisil Coalition Greenwich predicts the emergence of more nationally regulated U.S. venues similar to Archax and Zodia Markets in the UK, indicating a promising future for Archax's expansion plans [1].
[1] Archax Press Release, July 2025 [2] Archax Website, [accessed August 2025] [3] Aberdeen Investments Press Release, July 2021 [4] Lloyds Banking Group Press Release, July 2021
- Archax's acquisition of Deutsche Digital Assets has granted them key regulatory licenses under Germany’s BaFin, allowing them to offer a wide range of regulated digital assets to institutional clients, such as crypto exchange-traded products (ETPs) and tokenized real-world assets (RWAs).
- In addition to the DDA acquisition, Archax is advancing its tokenization platform by preparing to offer tokenized institutional money market funds on blockchains like Hedera Hashgraph and Ethereum.
- The synergy between Archax and Deutsche Digital Assets is expected to attract institutional investors from Germany, France, and Switzerland, as well as provide EU regulatory permissions for advisory, distribution, portfolio management, and contract brokerage.
- Beyond Europe, Archax plans to deepen institutional adoption of tokenized assets and is looking to set up more operations in the U.S., viewing it as an exciting place for growth in the digital asset space.
- Industry analysts predict the emergence of more nationally regulated U.S. venues similar to Archax, indicating a promising future for Archax's expansion plans. This development could foster competition in the fintech industry, particularly in areas like derivative trading, equities investing, and digital asset management.
