Archax announced a real-time streaming cash flow capability for tokenized securities on Hedera, allowing interest payments to flow directly into investor wallets using Circle's USDC stablecoin on the Hedera network. The development enables investors to receive continuously updating payments second-by-second rather than waiting for monthly distributions, quarterly coupons or end-of-day settlement cycles. The launch arrives as competition intensifies across the tokenization sector following institutional blockchain initiatives from firms including BlackRock, Franklin Templeton, JPMorgan, Citi, HSBC and UBS, with multiple industry estimates projecting tokenized real-world assets could grow into a multi-trillion-dollar market over the next decade.
Archax Enables Second-by-Second Interest Payments on Tokenized Securities
The new functionality enables interest payments to update in near real-time inside investor wallets while cash flows automatically follow tokenized securities as they move between holders. Because the underlying securities can be fractionalized, associated payments remain continuously divisible as ownership changes in real time. The capability runs on Hedera's enterprise-focused distributed ledger infrastructure while using Circle's USDC stablecoin as the payment layer.
Graham Rodford, CEO and co-founder of Archax, said, "Tokenizing assets was the first step; streaming cash flows is a giant leap into the future of finance. Industry-leading innovation like this unlocks true on-chain utility – such as real-time yield payment streams – as well as reducing market inefficiencies." He added, "This deployment on Hedera showcases how regulated, institutional products can leverage cutting-edge DLT capabilities to deliver unprecedented liquidity and efficiency to investors. This isn't just a 24/7 market, it's a real-time, second-by-second market."
The companies said the streaming cash flow capability could support additional use cases including continuous coupon payments, real-time revenue sharing, usage-based payments and automated yield distribution.
Major Financial Institutions Accelerate Tokenization Infrastructure Investment
Large financial institutions view tokenization as a mechanism for reducing settlement friction, lowering operational costs, improving liquidity, automating compliance and expanding asset accessibility. The shift creates competitive pressure on traditional financial infrastructure providers whose business models depend on custody layers, transfer agents, clearing systems, payment intermediaries and settlement delays.
The broader trend connects multiple themes reshaping financial markets, including stablecoin adoption, 24/7 trading infrastructure, real-time financial connectivity and automated financial systems. Archax and Hedera's launch highlights how tokenization is evolving beyond simple blockchain representation of assets into programmable financial infrastructure capable of operating continuously in real time.
Hedera and Archax Target Regulated Financial Applications
The partnership reflects Hedera's strategy of positioning itself as enterprise-grade blockchain infrastructure focused on regulated financial applications. Hedera's network emphasizes predictable low fees, institutional governance, high transaction throughput, compliance-focused architecture and enterprise integrations.
Archax operates under UK regulatory permissions while focusing on tokenized asset issuance, digital asset trading, institutional custody and regulated blockchain infrastructure. The company positions itself as regulated digital asset infrastructure bridging traditional finance and tokenized markets across the UK and Europe.
Gregg Bell, Chief Investment Officer at Hashgraph, said, "Our work with Archax is a strong example of how tokenization can improve the way financial assets are managed and distributed." He added, "By enabling cash flows to move seamlessly with tokenized securities, we're bringing greater efficiency, transparency, and precision to capital markets. It's an important step toward a future where financial assets and the value they generate move together in real time."
FAQ
What did Archax announce on Hedera?
Archax announced a real-time streaming cash flow capability for tokenized securities on Hedera, allowing interest payments to flow directly into investor wallets using Circle's USDC stablecoin on the Hedera network. The functionality enables payments to update second-by-second rather than through monthly distributions or quarterly coupons.
How does the real-time payment system work?
The capability runs on Hedera's distributed ledger infrastructure while using Circle's USDC stablecoin as the payment layer. Interest payments update in near real-time inside investor wallets while cash flows automatically follow tokenized securities as they move between holders, with payments remaining continuously divisible as ownership changes in real time.
Which financial institutions have blockchain tokenization initiatives?
According to the source, firms with institutional blockchain initiatives include BlackRock, Franklin Templeton, JPMorgan, Citi, HSBC and UBS, with the launch arriving as competition intensifies across the tokenization sector.
