HBAR Foundation Invests in Fidelity International’s Tokenized Fund

HBAR Foundation has announced its investment in Archax tokens representing shares of Fidelity International’s U.S. Dollar (USD) Money Market Fund (MMF). This move follows the tokenization of the fund on the Hedera network, facilitated by Archax—the first FCA-regulated digital asset exchange, broker, and custodian. Archax also serves as the fund’s distributor for Fidelity International.

These tokenized shares, available on the Archax platform, allow investors to gain direct exposure to traditional financial assets through blockchain-based mechanisms. Additionally, their use as a transparent “Proof-of-Reserves” mechanism for stablecoin reserves strengthens trust within the crypto ecosystem.

This investment aligns with HBAR Foundation’s mission to provide scalable solutions for institutional finance while leveraging Hedera’s high transaction capacity and low-cost infrastructure to enhance transparency, efficiency, and security.

HBAR Foundation Senior Vice President Gregg Bell stated:

“As we look ahead to 2025, the tokenization of real-world assets (RWA) will be a key driver of blockchain adoption. Our vision of a fully tokenized financial ecosystem aligns with Fidelity International’s commitment to innovation. Collaborating with asset managers is crucial to accelerating this shift, and this investment underscores our dedication to that goal. We are excited to strengthen our partnership with Archax and Fidelity International and help shape the future of blockchain-based finance.”

Fidelity International and Hedera’s Blockchain-Based Fund Initiative

Archax CEO and Co-Founder Graham Rodford added:

“The tokenization of Fidelity’s USD Money Market Fund on the Hedera network creates new opportunities for institutional investors. This model enables near-instant transfers, reduced counterparty risk, and enhanced cash management solutions. Hedera’s advanced distributed ledger technology (DLT) allows for near real-time settlement and cost savings, aligning perfectly with Archax’s commitment to top-tier infrastructure performance and security.”

Fidelity International continues to support the digital asset ecosystem by enabling crypto-focused investors to access real-world assets. By working with strong partners such as Archax and HBAR Foundation, Fidelity aims to bring innovative financial solutions onto the blockchain.

Emma Pecenicic, Head of Digital Propositions and Partnerships APACxJ at Fidelity International, commented:

“By embracing fund tokenization, Fidelity International is committed to bridging traditional finance with decentralized finance, offering yield and transparency to onchain investors. Through our partnership with Archax and HBAR Foundation, we are excited to expand the distribution channels for blockchain-based investment products.”

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Ripple President Monica Long also anticipates that Ripple USD (RLUSD) stablecoin will be listed “imminently” on major cryptocurrency exchanges.

In a January 7 interview with Bloomberg, Long confirmed that Ripple is actively working on additional exchange listings for RLUSD.

“We are continuing to expand the distribution and availability of Ripple dollars on other exchanges. So, I think you can expect to see more access and new announcements coming soon… very soon,” she said. However, she declined to provide specifics regarding RLUSD listings on major platforms like Coinbase.

According to Ripple’s website, RLUSD is currently available on Bitso, MoonPay, CoinMina, Bullish, Mercado Bitcoin, B2C2, Keyrock, Archax, Independent Reserve, and JST Digital.

Ripple launched RLUSD on December 17 as a stablecoin pegged 1:1 to the US dollar. At the time of publication, the stablecoin’s market cap was $71.8 million, according to CoinGecko data.

Ripple Market Cap

More than 76% of RLUSD trading volume is concentrated on the Bullish crypto exchange, split between two main trading pairs, RLUSD/USD Coin and XRP/RLUSD.

Meanwhile, the decentralized exchange Sologenic handles a smaller portion of the market. The XRP/RLUSD pair on Sologenic recorded $3.4 million in 24-hour trading volume, representing 3.56% of the total volume.

Ripple President: “Our business has doubled.”

The demand for RLUSD primarily comes from Ripple’s payment services, and President Monica Long stated that this segment of the business has doubled in the past year.

“Our business in the payments sector doubled last year, and therefore we see a very strong growth potential for our payment solution. Along with that, Ripple US Dollar will play an important role,” she said.

Long anticipates strong growth for stablecoins.

“We think this year will be a big year for crypto overall, and so demand for stablecoins will increase along with that. Stablecoins are really the main way to on-ramp and off-ramp,” she added.

According to DefiLlama data, the stablecoin market has grown by 55% since last year, reaching $206.2 billion. USDt remains the largest stablecoin, holding 66% of the market share.

“XRP ETF Coming Soon!”

Long indicated that XRP could be next in line for its own exchange-traded fund (ETF):

“I think we will see one very soon […] XRP is likely to be the next asset after Bitcoin and ETH.”

Several companies, including WisdomTree, have already taken steps to launch an XRP ETF. WisdomTree filed for approval with the US Securities and Exchange Commission (SEC) on December 2, 2024. Bitwise, Canary Capital, and 21Shares have also filed for similar products.

Long expressed that with the change in the US administration, the approval process for ETF filings will “accelerate.”

Ripple Chainlink Partnership

To enhance the utility of RLUSD, Ripple partnered with Chainlink on January 7 to integrate price feeds for RLUSD on Ethereum and the XRP Ledger.

This collaboration aims to provide tamper-proof, accurate price data, support DeFi applications, and reduce risks such as price manipulation or downtime.

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What is the Purpose of Tokenization?

Tokenization aims to digitize traditional financial assets, making them more accessible, efficient, and secure for investors. Ripple utilized XRPL to move Abrdn’s money market fund onto the blockchain, offering a real-world example of this transformation. The tokenized fund will be exclusively available to professional investors, enhancing operational efficiency and reducing costs in investment processes.

Duncan Moir, Abrdn’s Senior Investment Manager, highlighted that this initiative would streamline investment and cash management processes, making them faster and more efficient. Ripple emphasized that this project is just the beginning, aiming to expand blockchain adoption for real-world assets (RWA) on a broader scale.

Tokenization isn’t limited to money market funds. Government bonds and commodities are among the most tokenized asset classes. Government bonds hold a tokenized value of $2.28 billion, while commodities stand at $1.14 billion, showcasing blockchain’s potential to cater to both retail and institutional investors.

Ripple’s Vision for the Partnership

The tokenization of real-world assets represents one of the most promising applications of blockchain technology. According to Boston Consulting Group, this market could grow to $16 trillion by 2030. Ripple aims to position itself as a leader in this space.

Data from Dune Analytics reveals that the total value of tokenized money market funds has surpassed $1 billion. BlackRock’s USD Institutional Digital Liquidity Fund leads with $443.9 million in assets, and Ripple’s initiatives are adding more competition to the sector.

Ripple faces strong competition from Ethereum, which leads the RWA space with $3.07 billion in tokenized assets. Stellar, another competitor, holds $386.2 million in tokenized assets. However, Ripple aims to leverage XRPL’s unique features to strengthen its competitive edge.

The Impact on XRP and Market Performance

Ripple’s innovative projects are positively influencing the performance of its native token, XRP. Over the past week, XRP has surged by 27.9%, reaching $1.43 and capturing investor interest. This growth is attributed not only to market conditions but also to Ripple’s ability to address real-world challenges with practical solutions like tokenization.

Looking Ahead

The Ripple-Archax partnership underscores the growing importance of blockchain in reshaping the financial landscape. By combining Ripple’s blockchain expertise with Archax’s regulatory compliance, this collaboration is expected to set new standards in asset tokenization and drive broader adoption of blockchain technology across global markets.

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