Institutional finance evolves slowly, but it transforms radically when infrastructure aligns with mission. That’s where the Stellar Lumens Archax collaboration shines. Stellar’s foundation made a direct investment in Archax Group to further Archax’s mission to bridge traditional finance and blockchain. This isn’t symbolic or theoretical funding. It signals alignment of vision, resources, and infrastructure.
Archax integrated Stellar into its regulated tokenization engine. Then it issued a live tokenized Aberdeen money market fund on Stellar. That step turned theoretical promise into operational reality. It shows institutions can now issue, transfer, and manage regulated assets on Stellar with compliance baked in.
This partnership comes amid explosive growth in real‑world asset (RWA) tokenization. That market rose from $15.2 billion in December 2024 to over $24 billion by June 2025—an 85 percent increase. Archax sits at the forefront of that wave. Stellar’s investment gives Archax runway to scale operations and deepen credibility.
.@StellarOrg 🤝 Archax
— Archax (@ArchaxEx) August 18, 2025
Proud to announce that we've entered a strategic partnership with the Stellar Development Foundation (SDF), which includes a direct investment into Archax Group to support our mission of tokenising the world.
Recently, we integrated Stellar into our… pic.twitter.com/UDKcr923Tk
Why Stellar Works for the Institutional Crowd
Institutional players don’t move fast—but when they do, they expect infrastructure that works. Stellar brings what they need:
- Low-cost, high-speed transactions
- Built-in asset issuance frameworks
- Compliant architecture via account-level controls
- Programmability via Soroban smart contracts
Stellar wasn’t designed for speculative hype. It was built for payments, fast settlement, and low fees. That foundation makes it ideal for institutional asset rails. Stellar supports issuer controls at the protocol level, enabling compliance with transfer gates, KYC, and jurisdictional restrictions.
Adding Soroban smart contracts in 2024 introduced programmability to Stellar’s regulated layer. That allows automated fund flows, distribution, redemptions, and restrictions—all on-chain. Existing precedent, like Franklin Templeton’s BENJI U.S. Government Money Fund on Stellar, demonstrates the model already works.
Archax operates under full FCA regulation for exchange, custody, and brokerage. That status combined with Stellar’s design creates a rare institutional-grade blockchain stack fit for real-world asset workflows. This isn’t speculation; it’s infrastructure ready for regulated instrument issuance and movement.
Archax Isn’t Betting on One Chain
While Stellar takes center stage in this deployment, Archax is building across multiple blockchains. Each one serves a different purpose, and together they form a strategy. XRP Ledger (XRPL) was one of the earliest in the mix. In late 2024, Archax launched a version of abrdn’s “Lux” money market fund there. Ripple didn’t just endorse the move—they backed it with $5 million to support liquidity and adoption.
XRPL brought exposure to a wide network of institutions already familiar with Ripple’s infrastructure. That familiarity created comfort around the idea of tokenized funds. But it also revealed a broader truth: no single blockchain will serve every use case. Tokenized finance will move across multiple trusted rails, depending on regulatory needs, technical features, and distribution strategies.
XDC Network followed shortly after. In early 2025, Archax used XDC to launch four tokenized funds tied to BlackRock, Fidelity, abrdn, and State Street. These tokens benefit from XDC’s EVM compatibility and low operational cost. XDC’s architecture offers a blend of transparency and control, making it attractive for cross-border financial instruments and digital bond infrastructure.
Hedera Brings Settlement into Focus
Then came Hedera. Unlike the others, Hedera’s value comes from its governance model and consensus mechanics. Archax issued Fidelity International’s USD money market fund on Hedera earlier this year. This tokenization had backing from the Hedera Foundation, which provided strategic capital to support adoption. The focus here was on efficiency in collateral workflows.
In a July pilot, Lloyds Banking Group and abrdn used tokenized funds and government bonds as FX collateral. That transaction ran entirely on Hedera. It showed that tokenized fund shares can function inside post-trade workflows in real time. Given that the UK’s FX market sees trillions in daily volume, this application could scale fast.
Archax confirmed that more fund tokens have been deployed to Hedera. Some may represent BlackRock, Fidelity ILF, LGIM, and other giants. Although these tokens don’t carry balances yet, they point toward infrastructure being built now for large-scale deployment later. Hedera’s throughput, consensus timestamping, and low fees make it suitable for these use cases.
Why This Multi-Chain Approach Makes Sense
Archax isn’t choosing favorites. It’s assembling the right tools for different roles in a connected financial system. Stellar enables fast issuance and programmable compliance. XRPL brings familiarity and liquidity access. XDC aligns with emerging EVM-based tooling and regulatory standards in Europe. Hedera offers institutional throughput and strong governance for post-trade operations.
By spreading across trusted networks, Archax gives asset managers choice and flexibility. Institutions don’t want to be locked into one chain. They want the ability to adapt strategies, manage risk, and respond to changing regulation. A multi-chain architecture provides that flexibility without compromising on compliance or auditability.
Stellar stands out in this mix because of its focus on financial use cases from the start. Unlike general-purpose blockchains that pivoted to tokenization later, Stellar built for this from day one. With Archax now deploying live regulated funds on Stellar, the blockchain’s original design is proving itself at scale.
What to Watch in the Coming Months
The first live tokenized fund is already on Stellar. But more are coming. Archax has over 100 tokenized funds in its pipeline, and several will likely issue on Stellar. These include different asset types, geographies, and distribution models. Watch for new listings, increasing balances, and integration with trading or collateral systems.
Also watch for movement across chains. If the same fund appears on multiple ledgers—like Stellar, XDC, or Hedera—that will signal cross-chain interoperability becoming reality. Smart contracts will also become more active as issuers begin to automate redemption windows, risk checks, and investor controls.
This isn’t just a trend. It’s a structural shift in how real assets are represented and moved. With Stellar as one of the lead rails and Archax as the regulated engine, real-world finance is entering a new phase.
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[…] Archax’s collaboration, regulated by the FCA, supports its vision of bridging traditional finance with digital assets. This approach aligns with other notable partnerships like Polygon–JPMorgan, enhancing liquidity for blockchain ecosystems. […]