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- 💵 Archax has stax
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Gooood morning, Rainmakers! ☀️
As always, I have two captivating topics for you to dive into:
1️⃣ 💵 Archax closes $28.5M round: Capital is flowing into the security token ecosystem. Was FTX a positive catalyst for security tokens?
2️⃣ 🌧 Hamilton Lane is making it rain: Hamilton Lane to do something no tokenized fund has ever done before.
Without further ado, it's time to…
Get liquid 💧
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💰 Archax raises $28.5M in Series A
Things are moving folks.
The writing is on the wall for our security token industry.
Through all of the madness the last few weeks, it's clear that security tokens are going to be appended to the financial system.
The FTX saga was the wake-up call the crypto industry needed to see that the true power of blockchain is not with meme coins but when applied to real-world assets!
In fact, it's not just retail that is witnessing this, it's financial behemoths who are investing large sums of capital into our ecosystem.
Just recently, Archax who is a global, regulated, digital asset exchange, brokerage, and custodian based in London just closed a whopping $28.5M Series A!
Firstly, hats off to them and the team for this amazing accomplishment.
The investors in this round were: abrdn, with participation from Bitrock Capital, Blockchain Coinvestors, CE Innovation Capital, Keiretsu Capital, Lingfeng Capital, Mathrix AG, SGH Capital and The Tezos Foundation!
I bolded abrdn because they are one of, if not the largest asset managers in all of the UK.
You may be thinking, "Jonah, did you make a typo and not capitalize abrdn?"
No, in fact, using lowercase is a branding strategy to give off a more approachable, friendly vibe.
I find that a fascinating marketing & branding play, which is something that nuveen did as well.
Anyways, back to our regularly scheduled programming with the Ceo and Co-founder of Archax:
“We are extremely pleased to have been able to complete a round of this size during the turbulent crypto and traditional financial market conditions of the last few months. It is also fantastic to have such credible and strategic partner investors involved in the raise too – led by abrdn. We look forward to the next phase of the Archax journey as we scale up for launch and beyond with these partnerships in place.”
Archax was the first in the UK to allow institutional investors to custody and trade a variety of digital assets, such as digital securities and cryptocurrencies, alongside traditional securities too!
I am excited to see how they deploy this capital, congrats to our data partners for this feat.
🌧 Hamilton Lane is making it rain
Not too long ago, Hamilton Lane announced an agreement with Securitize to tokenize three funds.
After this announcement, Hamilton Lane is continuing this momentum with another announcement to work with Figure Technologies on more tokenized fund products.
The collaboration with Figure is a little bit different because these shares will be digitally native; whereas, with Securitize they are tokenized feeder funds of already existing funds.
Neither is better than the other, but it's interesting to see these two different structures.
Through this engagement, pending the registration statement becoming effective with the SEC, this is the first time a firm has provided exposure to a private markets investment strategy under the 1940 Act!
You may recall that Arca's Arcoin was the first blockchain-native fund registered under the Investment Company Act of 1940 (’40 Act). However, the portfolio is invested primarily in a portfolio of short and medium-duration U.S. Treasury bills, bonds, and notes, which are all public.
The difference here is Hamilton Lane's fund is primarily invested in private equity and credit, which is the first of its kind.
The institutions are here and are actively using blockchain for their securitized products, enabling more investors to obtain exposure to investments that were traditionally exclusive to the ultra-wealthy.
💦 What else is Drippin’
Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.
Disclosures:
• No money or other consideration is being solicited, and if sent in response, will not be accepted;
• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and
• A person’s indication of interest includes no obligation or commitment of any kind.