Archax and The HBAR Foundation tokenize BlackRock’s US Treasury money market fund, bridging traditional finance and blockchain.
Archax, a London-based broker, curator, and exchange for digital assets, has granted the BlackRock ICS US Treasury money market fund (MMF) access to its tokenization services. This endeavor, carried out in partnership with The HBAR Foundation, represents a significant advancement in integrating conventional financial assets with blockchain technology.
In the past, Archax, the first organization of its kind to be regulated by the FCA, tokenized Abrdn money market funds using the Hedera and Ethereum blockchains. Incorporating BlackRock’s MMF into this digital platform introduces fresh prospects for investment and liquidity.
By facilitating the trading of MMF shares on the Archax platform and through interconnected networks, tokenization enhances accessibility for institutional and professional clients.
In today’s market environment, the initial exchange of these tokenized shares occurred via the Ownera FinP2P digital asset network, illustrating this nascent technology’s practical application.
Consequently, integrating blockchain technology and digital technology into conventional money market funds enables a secure and streamlined system for managing and trading these financial instruments.
Additionally, tokenizing money market funds, such as BlackRock funds, offers several advantages. When confronted with a high-interest-rate environment, the ability to trade MMF shares swiftly and securely becomes a desirable liquidity feature. Graham Rodford, the CEO and co-founder of Archax, asserts that
“An addition of more funds to our portfolio of tokenized MMF shares makes the range we have more extensive and allows us to offer our services to a wider target audienceFurthermore, throughout the day, the secondary market for these tokenized instruments enables nearly instantaneous transfers of MMF shares, which can be utilized for collateral purposes in addition to standard purchasing and selling.
The aforementioned level of adaptability and average efficacy is critical in the financial sector, which is permanently being transformed by digital technologies.
Archax and Ownera’s collaboration and the Hedera network’s utilization are critical components in the effective deployment of this novel product. The Buy-Side Router technology of Ownera enables a wide range of financial institutions, including wealth managers and banks, to interact seamlessly with tokenized MMFs.
Ami Ben David, CEO and co-founder of Ownera, emphasized the significance of this integration within the context of a global perspective on the institutional tokenized assets ecosystem.
The CEO of The HBAR Foundation, Shayne Higdon, commented on the initiative:
The addition of MMF shares tokenized on Hedera, enabled by Archax, is a huge vote of confidence.”