Abrdn buys stake in digital assets exchange Archax

In the midst of a larger push by investors into crypto-assets despite a recent decline in value, British asset manager abrdn has purchased a stake in digital asset exchange Archax.

A spokeswoman for abrdn said the investment, which was made for an undisclosed value, provides the asset manager the biggest external holding in Archax and earns it a seat on the asset management's board.

Archax, which was established in 2018, gives users access to blockchain-based digital assets and was the first exchange for digital securities to get regulatory authorisation from the Financial Conduct Authority, according to a statement from abrdn.

According to abrdn Chief Executive Stephen Bird, "Blockchain technologies are inescapably going to form a large part of the future of financial markets."

The Financial Times broke the news of the purchase first.

The action taken by Abrdn is indicative of a broader uptick in institutional investors' interest in digital assets.

The largest asset manager in the world, Blackrock, has introduced a spot bitcoin private trust for institutional clients and teamed up with cryptocurrency exchange Coinbase to provide some of its services to customers.

This week, Abrdn cautioned that it will take longer to expand its sales and posted lower-than-expected earnings due to choppy markets.