According to Archax explanation, BlackRock is not a participant in Hedera tokenization; it is merely ‘aware’ of it.
Amidst misunderstanding around BlackRock tokenization, the price of HBAR token increased 100% before declining 22%.
By proactively informing BlackRock, Archax improved the transparency of token efforts.
During a speech on platform X, Archax CEO Graham Rodford clarified BlackRock’s role in tokenizing funds on the Hedera blockchain. This clarification was timely, as the Hedera token (HBAR) experienced a significant price jump. Concurrently, BlackRock’s announcement to tokenize the ICS US Treasury Fund raised questions about their involvement in the project.
(16/18) When working directly with an investment manager, Archax will always need to open accounts and may also have other agreements with them too. Therefore, the investment manager always sees Archax investing.
— Graham (@Grodfather) April 24, 2024
Hedera’s (HBAR) Market Movement
The first HBAR Foundation X post, which stated that Archax and Ownera had tokenized the BlackRock fund on the Hedera network, was the source of the knowledge. However, others in the cryptocurrency world misinterpreted the article, believing BlackRock would be involved in the tokenization process.
The market’s enthusiasm soared upon realizing the misunderstanding about BlackRock’s involvement, driving Hedera’s HBAR token to double in value within a single day. The notion of direct collaboration between the Hedera blockchain and BlackRock, the world’s most significant asset management, served as the foundation for the price movement.
Nevertheless, the immediate enthusiasm subsided when more details revealed that BlackRock was merely “aware,” not actively involved. As of the time of publication, the HBAR market was in a bearish wave, with the price trading at $0.125, 22% below the intraday high of $0.1776.
Archax Decision and Role
Graham Rodford addressed the confusion by stating that Archax, not BlackRock, has tokenized the fund on the Hedera blockchain. BlackRock did not actively participate in the tokenization exercise, even though it was aware of the initiative.
As part of its initiative to issue tokenized fund shares, Archax, according to Rodford, tokenized the fund. In this instance, the Hedera blockchain would be used for the share sale.
Archax decided to inform the investment manager about tokenization, despite it being unnecessary, demonstrating its commitment to openness. This approach aims to foster enduring partnerships. Rodford emphasized the importance of transparency in tokenization efforts and maintaining open communication with investment managers.. By alerting the investment manager beforehand, Archax aimed to encourage transparency and confidence in the industry.
