Abrdn has acquired a position in the licensed UK digital asset exchange Archax, making it the latest asset management to place a wager on crypto-assets.
Stephen Bird, the chief executive officer of Abrdn, stated that the investment presented a chance for “huge financial gains” since blockchain technologies were “inevitably going to play a significant role in the future of financial markets.”
Archax, which was founded four years ago, is the first digital securities exchange to receive approval from the Financial Conduct Authority and will launch later this year, according to abrdn.
It facilitates the trading of cryptocurrencies and tokenized securities by institutional investors.
The investment, which was acquired for an unknown value, grants Abrdn a seat on Archax’s board of directors and makes asset management the company’s largest external shareholder.
Bird stated, “These emerging digital technologies have the potential to provide better openness, faster speed, and less trade friction.”
Archax is one of the most potential UK players in this next anticipated high-growth area of finance: the usage of digital and tokenized securities with same-day settlement.
In this respect, the expansion of the digital investing sector is not just about cryptocurrencies.
This investment also creates a collaboration with some of the foremost minds in an area that has the potential to play a significant role in the future of finance, he noted.
Despite a decline in cryptocurrency trading volumes and values, Abrdn has taken this action.
Bitcoin, the most well-known cryptocurrency in the world, fell below $20,000 last month, having lost more than two-thirds of its value since November when it approached $69,000.
Bitcoin is currently selling at about $24,000, a decrease of 2.6% over the past 24 hours.
Last month, one of the world’s top cryptocurrency lenders, Celsius, went insolvent due to the recent sell-off.
However, Abrdn’s action reflects a broader increase in institutional investors’ interest in digital assets.
The largest asset manager in the world, Blackrock, launched a spot bitcoin private trust for institutional clients earlier this month.
It has also teamed with the bitcoin exchange Coinbase to supply clients with some of its services.
After suffering a loss in the first half of the year, Abrdn said this week that it will close one-fifth of its funds, hurting tens of thousands of average investors.
