Archax CEO on BlackRock’s Role in Hedera Tokenization

Archax CEO clarified misconceptions regarding BlackRock’s involvement in the tokenization of funds on the Hedera blockchain.

Graham Rodford, Archax CEO and Co-Founder of Archax provided clarity on BlackRock and the tokenization of funds on the Hedera blockchain in his speech on the X platform.

During the course of the price increase of Hedera’s (HBAR) token, which occurred after BlackRock made the statement that it would tokenize the ICS US Treasury Fund, questions were raised about the degree to which this particular company was involved in the endeavor.

Hedera (HBAR) Price Trend

The HBAR Foundation X initially posted information indicating that Archax and Ownera had tokenized the BlackRock fund on the Hedera network.

On the other hand, the cryptocurrency community misunderstood the post and speculated that BlackRock would be involved in the tokenization process.

The market misunderstood BlackRock’s involvement, leading to an ecstatic response. As a result, the value of Hedera’s HBAR token increased by 100% in just one day.

Price action was predicated on the concept of a direct collaboration between BlackRock, the largest asset management company in the world and the Hedera blockchain.

This collaboration was the basis for the move. The initial euphoria, on the other hand, started to diminish when new evidence made it clear that BlackRock was merely “aware” rather than actively engaging in the event.

The HBAR market had already succumbed to the negative wave by the time this article went live. The price had fallen by 22% from the intraday high of $0.1776 and was currently trading at $0.125.

Archax’s Role and Decision

In response to the confusion that had arisen, Archax CEO emphasized that Archax and not BlackRock, was the entity responsible for tokenizing the fund on the Hedera blockchain.

Archax CEO Clarifies BlackRock Involvement

Despite knowing the plan, BlackRock did not participate in the tokenization exercise in any way. Archax CEO noted that Archax had tokenized the fund as part of its program for the sale of tokenized fund shares.

We would use the Hedera blockchain to conduct this particular share offering. Archax made the decision to educate its investment managers about tokenization, despite the fact that doing so was not required of them.

Archax made this decision due to its commitment to transparency and cultivating long-term relationships. Archax CEO placed a strong emphasis on the importance of maintaining open contact with the fund managers and providing transparency regarding the tokenization projects under consideration.

By informing the investment manager in advance, Archax aimed to foster a more transparent and trustworthy environment within the industry.