(This story was updated on April 24 at 07:50 GMT to explain that Blackrock didn't choose Hedera to tokenize its money market fund (MMF). Tuesday's statement from Archax, Ownera and The HBAR Foundation explaining that the fund has been tokenized on the Hedera blockchain led to confusion among traders, wrongly attributing to Blackrock the decision to tokenize the fund. The correct version follows.)
- Archax, Ownera and The HBAR Foundation said on Tuesday they have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera.
- The Foundation's announcement suggested Blackrock's direct involvement in the operation, but this wasn't the case.
- HBAR price has exploded 75% to $0.1646, levels last seen in April 2022, but retreated afterwards.
Hedera Hashgraph (HBAR) price increased sharply on Tuesday after traders misinterpreted an announcement involving asset manager Blackrock in a fund tokenization project on the Hedera blockchain.
Also Read: Hedera Hashgraph: A rising competitor in the Blockchain space
Archax tokenizes Blackrock's MMF on Hedera
On Tuesday, Archax, Ownera and The HBAR Foundation said in an official tweet that they enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera.
Today we witness #RWA history as @BlackRock’s ICS US Treasury money market fund (MMF) is tokenized on @Hedera with @ArchaxEx and @OwneraIO, marking a major milestone in asset management by bringing the world’s largest asset manager on-chain pic.twitter.com/1Kye8cjAJx
— HBAR Foundation (@HBAR_foundation) April 23, 2024
The initial announcement suggested that Blackrock chose Hedera for the project, which isn't the case. Several crypto influencers on social media also highlighted this idea, supporting quick gains for the token. Archax CEO Graham Rodfort said later on its official X account that the choice to select Hedera came from them, not from Blackrock itself.
Hey @TheOCcryptobro it was indeed an @ArchaxEx choice to put on @hedera and, given our reg status we are one of the only places that can create, custody & trade these. It was our choice but everyone involved was aware. (1/2)
— Graham (@Grodfather) April 23, 2024
Archax is a London-based digital asset exchange, broker and custodian that partnered with the HBAR Foundation and Ownera, an institutional-grade digital assets platform, in a joint venture intended to bring the MMF to Hedera.
The news came after abrdn plc, the largest active wealth manager in the UK and one of the key members of the Hedera Council, tokenized its MMFs on Hedera in 2023. Its flagship tokenized funds represented a watershed moment in the asset management industry.
The @Hedera network is purpose built for institutional #RWA tokenization at scale
— HBAR Foundation (@HBAR_foundation) April 23, 2024
That's why #Hedera Governing Council @abrdn_plc, the UK's largest active wealth manager, tokenized its flagship Lux Sterling MMF on the network https://t.co/eEF3yagXnK
HBAR price pares gains
Hedera Hashgraph price soared 75% to a two-year high in response to the news, although it retreated somewhat once traders realized Blackrock wasn't behind the decision of its fund's tokenization.
HBAR/USDT 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
![VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoins-33758372_XtraSmall.jpg)
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
![Ethereum Classic price sets for a rally following retest of key support](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/EthereumClassic/ethereumclassic_XtraSmall.jpg)
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
![Celebrity meme coins lose their shine](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/crypto_matrix-637516561995093295_XtraSmall.jpg)
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
![Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit](https://editorial.fxstreet.com/images/Resources/CryptoWorldSEO3_XtraSmall.jpg)
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
![Bitcoin: Will BTC manage to recover from recent market turmoil?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_closer_XtraSmall.jpg)
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.