News & Analyses

HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera

  • Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera.
  • Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera.
  • HAR price has exploded 75% to $0.1646, levels last seen in April 2022.

Hedera Hashgraph (HBAR) price has skyrocketed on the back of a key fundamental in the ecosystem, Real World Assets (RWA).

The Hedera network is purposely built for institutional RWA tokenization at scale and the developers have made a remarkable push toward asset management by bringing the world’s largest asset manager on-chain.

Also Read: Hedera Hashgraph: A rising competitor in the Blockchain space

BlackRock tokenizes MMF on Hedera

In a landmark innovation in the real-world assets (RWAs) industry, Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera.

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.

It comes 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 was also a watershed moment in the asset management industry.

What this means for traders

Money Market Funds provide a suitable investment vehicle for investors, providing a safe, liquid, and stable investment option for anyone looking to preserve capital and manage cash effectively. It brings the advantage of institutional stability and yield, making it a crucial value addition for RWAs.

Tokenised MMFs makes it possible for users to trade shares on exchanges like Archax. There are also additional benefits such as expedited transfers and deployment as collateral as opposed to being used for traditional subscriptions and redemptions.

In a statement, CEO of The HBAR Foundation, Shayne Higdon explained:

The addition of MMF shares tokenized on Hedera, enabled by Archax, is a huge vote of confidence. Hedera’s unmatched speed, security, and low-cost infrastructure is ideally suited for the institutional-grade tokenization of real-world assets made possible by Archax.

It aligns with BlackRock CEO Larry Fink recent remarks about tokenization of financial assets, saying its enables instantaneous settlement.

HBAR price reaction as asset management heavyweight comes to Hedera

Hedera Hashgraph price soared 75% in response to the news, to trade for $0.1646 at the time of writing. These are levels last tested on April 25, 2022.

The volume profile shows a strong trading activity at current prices levels, suggesting it is an area of strong support, and Hedera Hashgraph price could extend the gains. The spike in volume profile in yellow shade on the right of the chart indicates this.

The Relative strength Index (RSI) corroborates the outlook, pointing to growing bullish momentum that could drive HBAR price higher.

With prospects for more gains, and after recording an intra-day high of $0.1817, the HBAR price could reach higher, tagging the $0.2000 psychological level, or $0.3000 in a highly bullish case. This is contingent on HBAR bulls keeping their profit appetite in check.

HBAR/USDT 1-day chart

On the other hand, if profit-booking sets in, the altcoin’s price could drop. A huge seller cohort is anticipated around the $0.1096 price level where there is a spike in white-shaded volume profiles. 

A move below the 21-day Smooth Moving Average (SMMA) at $0.1038 would invalidate the bullish thesis. This could send HBAR price spiraling to find another strong support base around the $0.0815 level. 

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