Categories: Tech News

Abrdn buys majority stake in crypto-asset trader Archax

Scotland-based asset management firm Abrdn has bought a majority stake in cryptocurrency trader firm Archax, the UK’s first regulated cryptocurrency firm, in the latest example of financial institutions adopting cryptocurrency.

Following the undisclosed investment, Abrdn will become Archax’s largest outside shareholder, according to a company statement.

Archax, which was founded in 2018, became the first crypto asset company to receive regulatory approval from the Financial Conduct Authority (FCA) in 2020.

The UK does not have a fully formed cryptoasset regulatory system, but it still monitors crypto companies for money laundering activities.

“This investment not only provides an opportunity for substantial financial benefits, but also creates a partnership with some of the leading thinkers in an area that has the potential to play a significant role in the future of finance,” said the CEO. of Abrdn, Stephen Bird.

“Blockchain technologies will inevitably form a large part of the future of financial markets.

“There is the potential to deliver greater transparency, greater speed and less commercial friction through the use of these nascent digital technologies.”

Founded in 1825, Abrdn’s investment marks the latest example of mainstream finance embracing crypto-asset technology, despite continued turbulence in cryptocurrency markets.

Goldman Sachs and JP Morgan have been exploring crypto ventures, with the former launching a cryptocurrency trading desk.

Last year, financial technology giant PayPal launched its cryptocurrency service in the UK.


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