Hedera Q3 2024 Overview: Unlocking Wealth with Token Solutions in RWA Markets
Hedera-HBAR-logos-with-green-digital-planet-background
With features like compliance integration, on-chain metadata, and Ethereum interoperability, the ATS aims to simplify asset management using the Hedera network.
Hedera leverages its technology across a variety of sectors, including DOVU’s carbon credit token, RedSwan’s fractional ownership in real estate, and Archax’s tokenized financial instruments.
With the launch of its Asset Tokenization Studio (ATS) in Q3 2024, Hedera Hashgraph is at the forefront of the token revolution, an enterprise-grade solution that simplifies the digitization of real-world assets. As tokenization gains momentum, Hedera’s focus on security, scalability, and compliance is reshaping how assets are managed and traded around the world.
Hedera Hashgraph's latest success
Tokenization involves converting ownership of physical or financial assets into digital tokens recorded on the blockchain. This process enables fractional ownership, making traditionally high-value assets such as real estate, bonds, and stocks more accessible to a broader range of investors. With tokenization, assets that were previously illiquid become easily tradable, increasing liquidity and enhancing investment opportunities.
Hedera’s ATS simplifies the tokenization process with an open source framework with integrated regulatory compliance and advanced functionality. Built on the powerful Hashgraph consensus algorithm, the ATS supports thousands of transactions per second and automates processes. On-chain metadata, role-based access controls, KYC compliance, and cap-and-trade enforcement make it secure and regulatory compliant.
Furthermore, the studio offers tools like pause functionality and token locking to effectively manage legal and security requirements. This compatibility with Ethereum standards, such as ERC-1400, also makes the ATS compatible with established frameworks. It also integrates with wallets like MetaMask and Blade Wallet, allowing for greater accessibility for both issuers and investors.
Increasing competition in the token market
It is also important to note that the token market is growing exponentially. As of Q4 2024, the number of tokenized RWAs has reached over $13 billion, with sectors such as private credit, US Treasury debt, and commodities leading the race. Giants such as JP Morgan, BlackRock, and BNY Mellon are investing in tokens.
Thus, everything is set to change the shape of global markets. Analysts expect the tokenized asset market to reach $16 trillion by 2030. Therefore, to further succeed in the competitive environment, Hedera’s efforts also go beyond ATS. Initiatives like DOVU tokenize carbon credits using Hedera technology, thus supporting sustainability.
The RedSwan project helps with fractional ownership of commercial real estate. UK-based abrdn is also using Hedera’s technology to tokenize money market funds, making it easier for smaller investors to get in. According to a CNF report, the Nairobi Securities Exchange (NSE) has joined the Hedera board, marking a pivotal step towards promoting tokenization in Kenya’s capital markets.
Additionally, Archax, a regulated digital asset exchange, leverages Hedera’s infrastructure to tokenize financial instruments by connecting traditional finance with digital assets. This reinforces Hedera’s commitment to openness and innovation in offering ATS alongside Hedera’s partnership with the Linux Foundation’s open source “Hiero” initiative.
Hedera’s native cryptocurrency HBAR has seen a massive surge, gaining nearly 200% over the past month, according to a report from CNF. The surge comes on the back of Canary Capital filing an exchange-traded fund (ETF) for HBAR with the U.S. Securities and Exchange Commission. At the time of publication, HBAR is trading down 5.4% at $0.1373 with a market cap of $5.24 billion.