Abrdn tokenizes assets on Hedera Hashgraph (HBAR) amid new improvement proposal

The UK’s largest active wealth manager Aberdeen Standard Investments (commonly known as Abrdn PLC) has initiated asset tokenization on Hedera Hashgraph, leveraging the network’s DLT.

Concurrently, EVM developers have released a new improvement proposal to enhance Hedera’s functionality.

Asset tokenization on Hedera Hashgraph

Abrdn PLC in collaboration with Archax, a regulated digital asset exchange, has tokenized its interests in the Aberdeen Standard Liquidity Fund (Lux) – Sterling Fund – Archax’s platform.

By leveraging the distributed ledger technology (DLT) of Hedera Hashgraph of which Abrdn is a governing council member, Abrdn has achieved a groundbreaking feat as the first major UK asset manager to issue a tokenized security.

By tokenizing on Hedera, abrdn became the first major UK asset manager to issue a tokenized security.

As the UK Treasury continues exploring fund tokenization, we look forward to them publishing a framework for tokenized funds and welcoming web3 adoption throughout the nations.

— HBAR Foundation (@HBAR_foundation) April 10, 2024

Abrdn’s move not only showcases Abrdn’s innovative approach to asset management but also underscores the potential of blockchain technology in revolutionizing traditional financial practices.

The collaboration between Abrdn and Archax demonstrates the growing interest in digital asset tokenization and the adoption of distributed ledger technology within the financial sector. It signifies a significant step forward in bridging the gap between traditional finance and the digital asset space.

Furthermore, Abrdn’s pioneering initiative aligns with the broader objectives of the HBAR Foundation and Hedera Hashgraph’s DeFi 2.0 strategy, which aims to foster innovation and accessibility within the decentralized finance ecosystem.

The new Hedera improvement proposal

In tandem with the developments surrounding asset tokenization on Hedera Hashgraph, EVM developers have introduced a new improvement proposal (HIP) for the Hedera Hashgraph network, aiming to enhance its functionality.

The proposal addresses a crucial gap in the Smart Contract service by enabling the granting of allowance and approval for ‘hbars’. This functionality, currently available for tokens, will now extend to the native cryptocurrency of the network, HBAR.

The proposal outlines the introduction of a Proxy Redirect Contract for Hbar Allowance and Approval. By implementing this feature, developers can streamline the process of transferring hbars between accounts and contracts, thus improving the developer experience and expanding the potential use cases for smart contracts on the Hedera network.

Key benefits of this proposal include better developer experience, support for new flows in decentralized applications (DApps) such as DeFi and token marketplaces, and differentiation from other blockchain networks by providing an allowance/approval mechanism for native tokens.

Furthermore, the proposal aligns with the broader objectives of the HBAR Foundation and Hedera Hashgraph’s DeFi 2.0 strategy, which seeks to foster innovation and accessibility within the decentralized finance ecosystem.

As EVM developers continue to iterate on this proposal, it represents a significant step towards unlocking the full potential of smart contracts on the Hedera network and driving the adoption of HBAR as a native cryptocurrency.

Hedera (HBAR) price

The price of the Hedera (HBAR) token has experienced fluctuations in recent months. Nevertheless, while it dropped by 20.46% over the past month, trading at $0.1025, it remains 55% higher compared to the same period last year.

These price fluctuations reflect the dynamic nature of the cryptocurrency market, influenced by factors such as market sentiment, investor speculation, and external developments within the ecosystem.

However, recent developments, such as the Abrdn’s tokenization of assets on the Hedera network and the introduction of the new improvement proposal could potentially impact HBAR’s price trend.

Following the above developments, it is no doubt that investors will be closely monitoring the Hedera Hashgraph (HBAR) price movements, seeking opportunities for trading and investment.

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