HomeNewsExpanding Horizons: Hedera Enables Tokenized Access to abrdn's Money-Market Funds

Expanding Horizons: Hedera Enables Tokenized Access to abrdn’s Money-Market Funds

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  • abrdn tokenizes money-market funds on Hedera’s DLT, enabling fractional ownership and cutting entrance hurdles for smaller investors.
  • Tokenization lets investors transact instantly and securely with clear record-keeping, improving confidence and flexibility.

Hedera and abrdn have joined forces to tokenize abrdn’s multibillion-dollar money market funds. This effort seeks to transform the investment environment by utilizing distributed ledger technology (DLT), with a focus on small and individual investors who have historically been excluded from high entry hurdles.

Hedera and the Innovative Approach of abrdn

Leading global investment powerhouse abrdn is leading the way in incorporating advanced technologies like DLT and AI into its business processes. This approach not only simplifies their internal operations but also creates distinctive investment options that conventional financial institutions are unable to provide due to old technologies.

The partnership with Hedera has already seen the tokenization of USD, EUR, and GBP money-market funds available via platforms like Archax Exchange. With plans to broaden this initiative, abrdn is set to revolutionize how investments are accessed and managed.

The choice to tokenize a portion of the $20 billion+ abrdn money-market funds on the Hedera public network is a significant step in the direction of financial inclusion. Historically, high minimum investment requirements and multiple layers of fees have kept these funds out of the reach of many.

Tokenization removes these barriers and, perhaps more importantly, permits fractional ownership. This means that even investors with minimal capital can now participate in opportunities offering stable, low-risk returns.

Duncan Moir, senior investment manager of abrdn, responded to this development by stating:

“By partnering with Hedera, we can make previously restricted asset classes accessible to a wider range of investors. This aligns perfectly with our commitment to financial inclusion and creating a more equitable investment landscape.”

Improved Security and Liquidity

The ability to conduct transactions instantly over the Hedera network is one of its most notable features; this stands in stark contrast to the lengthy settlement times associated with traditional financial systems.

For abrdn’s fund investors, this means quicker access to dividends, which can be reinvested promptly to capitalize on compound interest opportunities.

Furthermore, the transparency and security provided by DLT give investors clear, immutable records of their transactions and ownership, enhancing trust and providing flexibility through features like secondary market trading of tokens.

On the other hand, Shinhan Bank and SB Group made major contributions to Hedera’s governance and financial exploration initiatives. Their emphasis on stablecoin initiatives is in line with the larger objective of democratizing finance, as ETHNews has previously reported. The video below delves deeper into this development and provides additional insight.

The HBAR Token’s Present Market Dynamics on Hedera 

Hedera’s native token, HBAR, is currently trading for about $0.07931 as of this writing. Despite a slight dip of 0.60% over the last 24 hours and a more substantial 22.06% decrease over the past week, the broader implications of Hedera’s technological initiatives with abrdn might influence future valuations.

The price swings of HBAR highlight both the erratic character of cryptocurrencies and the forward-thinking efforts being made by organizations such as abrdn to incorporate these technologies into traditional financial activities.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628