A representative from BlackRock has stated that the company had no hand in the decision of Archax and Ownera to tokenize shares of BlackRock’s ICS Treasury Fund on Hedera.
According to BlackRock, there is “no economic tie” between the two companies, and the investment giant did not tokenize any of its funds—including its $22 billion money market fund—using the Hedera Hashgraph.
After the HBAR Foundation announced on X that blockchain companies Archax and Ownera tokenized BlackRock’s ICS U.S. Treasury Fund on Hedera, the HBAR token (Hedera’s cryptocurrency) surged by more than 100% on Tuesday.
According to a representative from BlackRock, the company had no involvement in the tokenization initiative, despite what some readers may have thought from the piece.
“BlackRock has not chosen Hedera to tokenize any of its funds, and the two companies do not have any business ties.”
Based on data from CoinGecko, HBAR’s price has dropped 32.8% in the last 24 hours, reaching $0.118 from an all-time high of $0.176 at 5:00 UTC on April 24.
“The representative went on to say that BlackRock will keep the public updated on the progress of their digital asset strategy in the same way as before.”
There were some crypto influencers that misunderstood the statement, but it still managed to get over 3,200 reposts and 2.9 million views since it went live a little over 36 hours ago.
Mason Versluis informed his 189,000 X followers that Blackrock has tokenized one of its money market funds on Herera.
Later on X, Archax CEO Graham Rodford explained that his firm chose to tokenize shares of BlackRock’s money market fund, but that BlackRock was “informed” of Archax’s move.
“What we observed on Twitter was quite indicative of reality. Clients of Archax’s were interested in purchasing shares of the BlackRock money market fund. The reason we opened an account at BlackRock was because they showed interest,” Roford explained.
“We wanted to let them know that we were planning to tokenize most of our investments. Since we have a strong relationship with BlackRock, we thought, ‘Hey, we’re putting out a press release. Are you guys glad to check it?’ So they checked it and offered their comments on it,” he stated.
“Although Archax has been in charge of the initiative, some got off course and started claiming that BlackRock was involved in this and that.”
According to CoinGecko, HBAR is still more than 78% lower than its all-time high of $0.57 in September 2021, even with the temporary price surge.
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