Algorand's native "no-code" atomic settlement allows for
efficient trading without having to rely on smart contract code
BARCELONA, Spain and LONDON and UTRECHT,
The Netherlands, June 27,
2024 /PRNewswire/ -- Today, the Algorand Foundation,
Archax, and Quantoz Payments announced:
- The first ever tokenized money market fund has arrived on
Algorand following the issuance by Archax of tokenized interests in
abrdn's €3.8 billion Euro Money Market
fund1.
- Integration between Quantoz Payments and Archax allows for the
use of EURD electronic money on the Archax digital assets
platform.
- 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 robust tokenized 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, comments: "The use of EURD to purchase Money Market Funds
in tokenized format is a ramp up to deploy more tokenized 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, comments: "There is now real momentum
building for tokenized 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."
Russell Barlow, abrdn's Global
Head of Multi-Asset and Alternative Investment Solutions,
commented: "At abrdn, we are committed to leading digital
innovation in investment management and are delighted to see
continued progress in this field. The development highlights the
importance of institutional infrastructure providers, and we
congratulate Archax, Quantoz and the Algorand Foundation on this
key milestone."
"The future of finance is truly instant - including the instant
finality of transactions. This partnership between Archax and
Quantoz to bring both a digital euro and a tokenized fund to
Algorand makes this a reality for registered investors across
Europe," said Eric Wragge, global head of business development
and capital markets for the Algorand Foundation. "The impact of
combining tokenized assets and a digital euro is significant, and
we look forward to bringing even more innovation like this to
Algorand's institutional-grade, quantum-secure blockchain."
EURD and Quantoz Payments
EURD, a programmable European Union digital euro, is issued on
Algorand by Quantoz Payments, an Electronic Money Institution (EMI)
authorized 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.
Asset tokenization and Archax
Archax is based in London and
is the first-ever firm to be authorized by the UK Financial Conduct
Authority ("FCA") as a digital securities exchange, custodian and
brokerage, as well as the first to be listed on the regulator's
Cryptoasset Register. Consistent with these regulatory
permissions and its status as a distributor of abrdn products,
Archax is able to a) purchase and hold fund units in bankruptcy
remote trust, b) issue Algorand Standard Asset tokens representing
beneficial ownership of the underlying fund units, and c) observe
the Algorand blockchain to identify peer to peer transfers and
ownership changes. Additionally, given its integration with
Quantoz, it is able to accept, distribute, and redeem EURD, which
can be used to accept deposits, process withdrawals, distribute
coupons, interest pay-outs, or dividends.
Subject to Archax onboarding procedures, qualified investors may
invest in, custody, and trade the range of tokenized products
available on Archax's digital assets platform, which includes
access to the abrdn's money market funds.
To abide by AML and regulatory requirements, tokens issued by
Archax may only be transferred between wallets whitelisted by
Archax.
Transaction orchestration and Algorand
A unique feature of the Algorand blockchain is that atomic swap
functionality - controlled exchange of assets if and only if all
parties fulfill their side of the bargain- is built into the
protocol itself and does not require smart contract programming.
Algorand atomic swaps allow for the execution of group
transactions, without counterparty risk and with precise
transaction ordering, enforced by consensus, a critical requirement
of several types of complex financial workflows.
In addition, atomic swaps benefit from Algorand's instant
finality, which means that all transactions are final the moment a
new block is created (~ 3 seconds). All interdependent transactions
that are part of an atomic swap, are guaranteed to be executed in
the same block.
About Quantoz Payments and EURD
Quantoz Payments is incorporated in the Netherlands and is a 100% subsidiary of
Quantoz N.V. Quantoz Payments is an issuer of electronic money in
the form of e-money tokens. The Company holds an Electronic Money
Institution (EMI) license from the Dutch supervisory authority, the
Dutch Central Bank.
EURD is the e-money token issued by Quantoz Payments. The funds
received in exchange for the e-money tokens are held by Stichting
Quantoz, a bankruptcy remote entity, which ensures that these funds
are safeguarded following the requirements of MiCAR. The e-money
tokens in circulation are 102% overcollateralized. Quantoz Payments
and Stichting Quantoz are subject to prudential supervision by
DNB.
Notice: The EURD white paper will be published on
quantozpay.com. EURD e-money token holders have redemption rights
at any time at par value, with redemption terms outlined in the
EURD White Paper.
About Archax
Archax is a global, regulated, digital asset exchange, brokerage
and custodian based in London.
Founded by experts from the financial markets world and backed by
an accomplished advisory board, Archax offers a credible bridge
between the blockchain-centric crypto community and
the traditional investment space. Archax is the first-ever firm to
receive FCA regulation as a digital securities exchange, custodian
and brokerage. It was also the first firm to be listed on the FCA's
Cryptoasset Register as a VASP (Virtual Asset Service Provider).
Archax has been designed specifically for institutional investors
to trade in all types of digital assets, from
cryptocurrencies to digital securities. It is built
using existing, proven, resilient, scalable, high-performance
exchange infrastructure, hosted in top-tier datacentre space, and
integrated into the existing institutional trading workflow. For
more information, go to www.archax.com.
About Algorand Foundation
Algorand's mission is to
power a world where information has integrity and innovative ideas
can scale. The Algorand Foundation supports Algorand's rapidly
growing ecosystem by providing a best-in-class developer
environment, supporting key infrastructure and setting technical
standards, offering comprehensive support to builders and
entrepreneurs, and providing the infrastructure for
decentralized governance.
Founded by Turing Award-winning cryptographer Silvio Micali in 2019, Algorand has grown into a
vibrant ecosystem of developers, entrepreneurs, and enterprise
partners that benefit from institutional-grade certainty and
resilience, while features like low fees, instant finality, and a
minimal carbon footprint also appeal to the protocol's millions of
retail users. Builders of all kinds can use common programming
languages like Python to develop advanced apps and protocols that
solve important problems at a global scale: instant payments in war
and disaster zones, self-sovereign identity for the
disenfranchised, supply-chain traceability for global commerce,
permissionless protocols addressing financial inclusion, and the
creation of entirely new markets through tokenization, to name a
few. To learn more and start your journey on Algorand, visit
algorand.foundation.
1 Assets under management as at
30 April 2024,
https://abrdn.kurtosysweb.com/pdfs/F_STDI_en-GB-NN_LU0966092131.pdf
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SOURCE Algorand Foundation