Archax and Stellar XLM Launch New Era for RWA Tokenization AllinCrypto August 19, 2025
Stellar Development Foundation (SDF) and Archax have formed a new strategic partnership that will see the two working together in tokenization and real-world assets.
Stellar (XLM) and Archax are set to push for the institutional adoption of tokenized assets, opening new pathways for efficiency, liquidity, and international acsess.
The new partnership also involves a direct investment from Stellar into the Archax Group to boost tokenization efforts across the board.
Stellar XLM x Archax: What does this mean?
The Stellar Development Foundation has made a direct investment into the Archax Group, a UK-regulated digital asset exchange, broker, and custodian.
This investment is not just financial but also signals a shared commitment to bridging the gap between traditional financial institutions and blockchain networks for tokenization.
Archax, with its regulatory credentials and extensive relationships with financial institutions, including banks and investment groups, is positioned to bring traditional assets on-chain in a big way.
The partnership builds on work that is already underway. Archax has tokenized an Aberdeen Money Market Fund on Stellar XLM and integrated Stellar into its tokenization engine and RWA platform.
With Stellar onboard, Archax is prepared to introduce a wide range of institutional-grade tokenized assets to the Stellar network, similar to work previously done with Ripple’s XRP Ledger and Hedera Hashgraph with UK money market funds & Lloyds Bank.
Why Tokenization on XLM Matters
Tokenization is being adopted en masse at an unprecedented rate, with the US government keen to utilize blockchain tech to bolster the United States dollar and create 24/7 markets.
According to Archax, between December 2024 and June 2025, the market for tokenized real-world assets expanded from $15.2 billion to more than $24 billion, an 85% increase in six months.
From faster settlement times to lower transaction costs and international accessibility, tokenized real-world assets are an alternative to legacy financial assets.
For institutions that already manage trillions of dollars in assets, efficiencies and opportunities offered by tokenization are too significant to ignore any longer. Paul Atkins, head of the SEC, recently initiated Project Crypto after the White House published its Crypto Report of 2025.
Atkins aims to bring tokenization to US markets, aiming to integrate crypto in the finanical system to help improve and upgrade the existing finanical system.
Archax CEO and co-founder Graham Rodford: “The Archax vision has always been that all financial instruments will move onchain, and we find ourselves at a pivotal point right now, because institutional adoption of digital assets is vastly accelerating.”
Stellar’s Unique Positioning
Unlike other blockchain networks that were initially designed for cryptocurrencies or general-purpose smart contracts, Stellar was purpose-built to enable efficient, low-cost transactions and asset tokenization around the world.
Its focus on settlement speeds and minimal transaction costs makes XLM a natural fit for RWAs.
From Raja Chakravorti, Chief Business Officer at the Stellar Development Foundation:
“Real-world assets are moving onchain because costs are lower and transactions can move anywhere around the globe in seconds. The Stellar network was purpose built to enable fast settlement times, low costs, and the tokenisation of real-world assets that is the future of finance.
By joining with Archax, Stellar earns a direct pathway into the heart of institutional finance, making XLM a serious contender for leadership in the RWA sector.
Stellar: Real-World Applications Already in Motion
Archax recently collaborated with Lloyds Bank, Hedera Hashgraph (HBAR), and Aberdeen Investments to tokenize UK money-market funds to serve as acceptable collateral for FX trades within the Archax collateral network.
With Stellar now integrated, similar projects and tasks could be extended to Stellar, possibly rivalling Hedera, showcasing practical benefits of tokenization to financial institutions.
The Archax and Stellar collaboration is a major step toward the large-scale tokenization of financial markets by public DLTs and blockchains.
As tokenization becomes a mainstream component of global finance, networks that can balance efficiency, compliance, and scalability will lead the way. Stellar, with Archax as partner, is in the RWA race to become the ago -to blockchain for institutions.
With Stellar investing in Archax and supporting its tokenization engine, XLM is positioning itself as a leading platform for real-world asset innovation.
Most recently, Denelle Dixon, CEO of the Stellar Development Foundation, announced that TVL increased on Stellar to $84 million in Q2 2025 from $50 million in Q1 2025 as new developers and firms are arriving on XLM’s network.
The post Archax and Stellar XLM Launch New Era for RWA Tokenization first appeared on AllinCrypto.
