BlackRock, the Wall Street asset management giant controlling $9 trillion, tokenized a money market fund (MMF) on Hedera, which spurred the HBAR token to momentarily surge nearly 125%. The price cooled down afterward, stabilizing at $0.16 on Wednesday, April 24.
London-based digital asset exchange, brokerage, and custodian Archax, along with the HBAR Foundation and the institutional digital asset platform Ownera, collaborated to introduce money market funds to the Hedera platform.
According to the details in the announcement, this milestone was achieved following the successful tokenization of its MMF on Hedera by Abrdn, a member of the Hedera Governing Council, last year.
Abrdn, the UK’s largest active wealth management firm, marked a significant milestone in the asset management industry with its flagship tokenized fund.
Following the news, the price of HBAR initially skyrocketed to a peak of $0.18 but later fell back to $0.16.
Source: CoinMarketCap
Through this initiative, users can now directly access BlackRock’s MMF on the Archax platform, and they are also allowed to enjoy other products offered there.
Additionally, users can access corresponding services through linked networks. Otherwise, only institutional or professional clients have the right to access them. As they proceed, the platform noted that additional tokenization of MMFs offers multiple benefits.
Reportedly, they considered improvements in security and speed. Furthermore, the platform further affirmed Hedera’s fixed fee structure. The firm also expressed confidence in its development potential, stating it is ready to collaborate with traditional finance (TradFi) companies to tokenize more real-world assets (RWA).
Today, alongside precious metals, U.S. Treasuries, and the real estate sector, money market funds have also entered the game.
People no longer need to go through cumbersome procedures to apply for purchases, and retail investors can enter the market with smaller amounts more easily.
BlackRock’s actively developing RWA sector is gaining significant momentum from money market funds, which provide institutional stability and returns suitable for investors.
Through the tokenization of money market funds, their shares can be traded on exchanges like Archax, providing additional benefits, including instant transfers and deployment as collateral, not just for traditional subscriptions and redemptions.
"With Archax's support, the increase in tokenized MMF shares on Hedera is a massive vote of confidence," stated Shayne Higdon, CEO of the HBAR Foundation, in a statement.
He emphasized that Hedera’s unparalleled speed, security, and low-cost infrastructure are exceptionally suited for the institutional-level tokenization of real-world assets achieved by Archax.
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