BlackRock Denies Business Ties with Hedera Despite Tokenization Announcement
Summary:
BlackRock, the financial management giant, has stated it has no commercial link with Hedera and has not used Hedera Hashgraph to tokenize any of its funds. The assertion follows an over 100% surge in Hedera's token (HBAR) value after an announcement that Archax and Ownera would use Hedera to tokenize BlackRock's ICS U.S. Treasury Fund. BlackRock noted that they would directly inform the public regarding their digital asset strategy while Archax CEO stated that it was Archax's independent decision to use Hedera.
BlackRock has unequivocally stated it is not involved in a business arrangement with Hedera and has not entrusted the Hedera Hashgraph to tokenize any of its funds, including its dominant $22 billion money market fund. This confirmation comes following the significant jump of over 100% in Hedera's token (HBAR) value on Tuesday, driven by the HBAR Foundation’s announcement that blockchain firms Archax and Ownera would tokenize BlackRock’s ICS U.S. Treasury Fund using Hedera. The announcement spurred confusion, leading some to assume BlackRock was instrumental in this tokenization initiative - a claim the company spokesperson denied. At the time of reporting, HBAR has witnessed a 32.8% fall, taking its value to $0.118 from a high of $0.176 recorded at 5:00am UTC on April 24. BlackRock clarified that any developments pertaining to its digital asset strategy will be directly communicated to the public. Despite over 2.9 million views and 3,200 reposts of the HBAR Foundation’s announcement in just over 36 hours, confusion persists over the message. Misinterpretations led Mason Versluis to tell his 189,000 followers that BlackRock had tokenized one of its money market funds on Hedera. Archax CEO, Graham Rodford clarified that it was an independent decision by his firm to put BlackRock’s money market fund on Hedera, but maintained BlackRock was cognizant of the choice of using Hedera. Rodford also suggested that while approaching the investment manager is not a necessity for tokenization efforts, they choose to do so with an aim to forge long-lasting relationships. HBAR Foundation was reached for comments on April 24 but did not respond. After a short price surge, HBAR continues to trade over 78% lower than its September '21 peak of $0.57, as per CoinGecko. The last month's price change can be seen in the figures provided by CoinGecko.
Published At
4/25/2024 5:56:23 AM
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