At Archax, a fintech company situated in London, we are broadening our tokenization offerings to encompass the BlackRock ICS US Treasury money market fund (MMF). This initiative is being carried out in collaboration with The HBAR Foundation and marks an significant advancement in the fusion of conventional financial assets and blockchain technology.
Introduction of Tokenized MMFs
Archax, a trailblazer among FCA-approved entities, previously facilitated the tokenization of money market funds from Abrdn using both Hedera and Ethereum blockchains. With BlackRock’s MMF now available on this digital platform, investors and institutions enjoy expanded choices for liquidity and investment opportunities. The tokenization procedure makes it possible for MMF shares to be traded on Archax and connected networks, ultimately enhancing accessibility to professional and institutional clients.
Today, history is made in the world of the Real Estate Roundtable Association as BlackRock’s ICS US Treasury money market fund gets tokenized on Hedera with Archax and Ownera. This is a significant achievement in asset management, as the world’s largest asset manager takes its first steps onto the blockchain.
— HBAR Foundation (@HBAR_foundation) April 23, 2024
In simpler terms, the first exchange of tokenized shares took place using Ownera’s FinP2P network, proving the practical application of this new technology in current financial markets. The fusion of digital and blockchain technology with traditional money market funds enables secure and seamless management and trading of these financial instruments.
Benefits of BlackRock MMF Tokenization
The tokenization of money market funds, for example, BlackRock funds, also brings several benefits. In an environment with high-interest rates, the liquidity facility of being able to trade MMF shares quickly and safely becomes an attractive alternative. According to Graham Rodford, the CEO and co-founder of Archax,
Adding more funds to our collection of tokenized Money Market Fund (MMF) shares expands the scope of our offerings and enables us to cater to a larger client base.
Furthermore, the secondary market for tokenized MMF shares offers the convenience of constant transfers throughout the day, allowing for not just buying and selling but also collateral adjustments. This flexibility and efficiency are key advantages as digital technologies reshape the financial sector.
Strategic Collaborations Enhance Market Opportunities
Archax, Ownera, and Hedera network collaboration are crucial for the successful launch of this new product. Ownera’s technology, featuring a Buy-Side Router, enables various financial institutions, including banks and wealth managers, to seamlessly engage with tokenized Money Market Funds.
In simpler terms, Ami Ben David, the CEO and co-founder of Ownera, emphasized the importance of this integration during a discussion about a broader plan for a unified system for trading institutional digital assets.
Shayne Higdon, CEO of The HBAR Foundation, commented on the initiative,
“The addition of MMF shares tokenized on Hedera, enabled by Archax, is a huge vote of confidence.”
Hedera’s technology stands out for its fast processing, robust security, and affordability. As a result, it is highly sought after by institutions for creating and managing tokens.
eToro and 21Shares Launch Crypto Smart Portfolio
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- MNT PREDICTION. MNT cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- OP PREDICTION. OP cryptocurrency
- ARKM PREDICTION. ARKM cryptocurrency
- EUR KRW PREDICTION
- VIC PREDICTION. VIC cryptocurrency
- NLS PREDICTION. NLS cryptocurrency
- Call of Duty: MW3 and Warzone Season 5 Reloaded Update Patch Notes Revealed
2024-04-24 00:20