Archax and Quantoz Payments have announced The Algorand Foundation, the first ever tokenised money market fund that has arrived on Algorand following the issuance by Archax of tokenised interests in abrdn’s €3.8bn Euro Money Market fund.
There will be integration between Quantoz Payments and Archax which allows for the use of EURD electronic money on the Archax digital assets platform.
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Native “no-code” atomic settlement of EURD/fund token in peer-to-peer secondary market transactions enables instant execution of interdependent transactions in a predefined order.
Combining tokenised assets, on-chain digital money, and native atomic settlement, the partners have been able to illustrate the feasibility and efficiency of moving the end-to-end investment and cash settlement process on-chain: investment, asset transfer, trading, settlement, and distributions.
Nick Haasnoot, CEO of Quantoz Payments, commented: “The use of EURD to purchase Money Market Funds in tokenised format is a ramp up to deploy more tokenised financial instruments. Delivery Versus Payment via regulated electronic money will form the basis of an expected wide acceptance of this product, with opportunities for both retail and institutional investors towards a variety of assets.”
Graham Rodford, CEO and co-founder of Archax, added: “There is now real momentum building for tokenised real-world assets, and yield-bearing, regulated instruments, like money-market funds, are at the forefront of this activity. Solving the “cash-leg” of on-chain settlement has generally proved more challenging than the “asset-leg” and the use of digitally-native money, like EURD, can be an important tool to unlock the benefits that on-chain financial markets can bring. We are pleased to be working with Algorand and Quantoz to deliver the improved transparency and efficiency that blockchain/DLT offer.”
EURD and Quantoz Payments
EURD, a programmable European Union digital euro, is issued on Algorand by Quantoz Payments, an Electronic Money Institution (EMI) authorised and regulated by the Dutch Central Bank. EURD in issuance are more than covered by a 102% surplus of high quality liquid assets that are subject to strict Central Bank oversight and held in a bankruptcy remote foundation, Stichting Quantoz. EURD may be created by sending funds via the SEPA payment network and holders have the right to redeem for par value at any time.
