Archax Just Picked Chainlink to Price Its Tokenized Treasuries. Is LINK a Better Buy Than XRP?

Archax, the UK’s first digital asset platform regulated by the Financial Conduct Authority (FCA), has partnered with Chainlink Data Streams to price GOVY, its continuously available tokenized U.S. Treasury product. This development raises the question: is LINK a better investment than XRP? Archax announced the deal on October 19, 2026, and each GOVY token is backed one-to-one by short-dated Treasury bills held by Northern Trust (NASDAQ: NTRS | NTRS Price Prediction).

Chainlink serves as an oracle, bringing external data—like the price of bonds—onto the blockchain, allowing smart contracts to function effectively. Chainlink’s Data Streams is a fast-updating version designed for trading and lending applications. Archax claims this feature enables banks, asset managers, and DeFi users to use GOVY as collateral, which a loan contract can automatically value and adjust.

However, the news didn’t positively impact Chainlink (CRYPTO: LINK). As of October 20, LINK traded around $12, down 6.5% over the past week and 77.4% from its all-time high. Meanwhile, XRP (CRYPTO: XRP), whose ledger already hosts earlier Archax work with Ripple, traded at $1.29—down 4.2%. So, in the Chainlink vs. XRP debate, does this partnership give either cryptocurrency a reason to rise?

How Archax’s GOVY Deal Makes Tokenized Treasuries Usable as Collateral

GOVY simplifies the process for institutions since Archax automatically reinvests into a new short-dated bill at each maturity. This way, holders maintain exposure to Treasury bills without having to reinvest manually. Additionally, GOVY is designed to align with High-Quality Liquid Assets standards, which dictate the assets banks must hold to meet regulatory requirements.

Moreover, Archax indicates the integration will extend GOVY across platforms including Ethereum (CRYPTO: ETH), Hedera, and Stellar, with aims to support secured lending, automated collateral management, and margin trading. Margin refers to the collateral that a trader provides to borrow against their positions.

Archax operates under the necessary regulatory frameworks, as the first company approved by the FCA as a digital securities exchange, custodian, and brokerage. It also operates a venue regulated by Spain’s securities authority. However, Archax is a private firm and does not disclose its revenue, the size of GOVY, or Chainlink’s compensation, making it difficult for outsiders to gauge the product’s earnings.

Chainlink Benefits Only Through Its Reserve

Chainlink generates demand for LINK through a process called payment abstraction. Clients can pay in stablecoins, and Chainlink converts that income into LINK on decentralized exchanges and places it in the Chainlink Reserve, which Chainlink plans to leave untouched for several years. This conversion is the only way to connect an Archax contract to LINK.

However, the announcement did not specify how LINK will be used, the associated fees, or how much of that revenue goes to the Reserve. This lack of detail leaves LINK holders uncertain about the buying pressure this deal creates. The data contract for a single tokenized product may also be minimal compared to LINK’s daily trading volume.

Furthermore, Archax did not mention any banks, lenders, or DeFi protocols that have accepted GOVY as collateral, only stating what GOVY “can support.” Collateral can generate fees only after a lending platform lists it and borrowers use it. Additionally, the two executives quoted in the announcement, Johann Eid from Chainlink Labs and Nick Donovan from Archax, earn income from the products they endorsed.

XRP Isn’t on GOVY’s List of Supported Chains

Both companies face stiff competition. GOVY competes with tokenized Treasury funds from major players like BlackRock (NYSE: BLK), while Chainlink competes with other oracle providers. However, its newly launched cross-chain repo and collateral platform now has a regulated asset for pricing. A repo is a short-term loan secured by securities.

XRP’s connection to Archax is through its previous work with Ripple. In November 2024, Ripple, Archax, and abrdn launched the first tokenized money market fund on the XRP Ledger. Yet, the chains specifically mentioned for GOVY are Ethereum, Hedera, and Stellar, and Hedera and Stellar both target the same tokenization market.

Moreover, these two cryptocurrencies serve different functions. LINK pays for Chainlink’s data and cross-chain services, while XRP is used primarily for transaction fees on the XRP Ledger (which are then burned) and serves as a bridge asset between currencies. Therefore, even if GOVY were launched on the XRP Ledger, it might not create significant demand for XRP.

Is LINK a Better Investment Than XRP After the Archax Deal?

In light of this news, LINK appears to have an edge, as it can benefit from Reserve purchases, while XRP doesn’t gain directly from a product not on its ledger. Additionally, LINK is down just 1.8% year-to-date, compared to XRP’s 29.6% decline. LINK has also risen 38.7% in the last 90 days, while XRP has risen only 13.5%. However, volatility remains: LINK’s market cap is about $9.1 billion, roughly one-ninth of XRP’s $81.7 billion, and LINK has recently posted a larger weekly drop.

For LINK to show significant growth, a lending institution will need to accept GOVY as collateral, which would increase Reserve purchases. Meanwhile, if it closes below its recent low of $11.5, it could signal further challenges ahead.

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