Hedera Highlighted in Global Digital Finance Report: How Is HBAR Powering the Future of MMFs?

Hedera Highlighted in Global Digital Finance Report: How Is HBAR Powering the Future of MMFs? AllinCrypto November 4, 2025

A new report from Global Digital Finance (GDF), co-authored by Ownera, EY, and Hogan Lovells, has shed new light on the importance of distributed ledger technology in transforming tokenized money market funds and how collateral moves in markets.

Among the leading blockchain networks mentioned in the report, Hedera Hashgraph stands out alongside Ethereum, Stellar, and Polygon.

The recognition of Hedera by GDF showcases the network’s relevance in the global push toward digital asset adoption and DLT integration into financial infrastructures.

Global Digital Finance Report on The Role of Tokenized Money Market Funds

The GDF report emphasizes that tokenization, especially of money market funds and treasuries, is reshaping how liquidity and collateral are managed across borders.

layer 1 networks and Hedera in Global Digital Finance's report
Layer 1 networks and Hedera in GDF’s report

Tokenized MMFs (TMMFs) operate like their cash-based equivalents, allowing institutions to move collateral seamlessly and instantly outside of traditional market cycles. These efficiencies are a leap forward in collateral mobility, especially for derivatives and repo markets, where liquidity and settlement speeds are important.

According to GDF, tokenized real-world assets are projected to reach $18 billion by early 2025, with MMFs among the fastest-growing products.

By leveraging DLTs, TMMFs can combine the safety and yield of traditional instruments with the speed and transparency that blockchain systems provide.

The Case for Collateral Mobility in Europe & The UK using Money Market Funds by Global Digital Finance
The Case for Collateral Mobility in Europe & The UK using Money Market Funds

As global financial institutions such as BNY Mellon and Goldman Sachs begin adopting tokenized MMFs, networks like Hedera could serve as the backbone infrastructure. Already in 2025, Lloyds Bank, with Aberdeen Investments and Archax, used HBAR to tokenize UK MMFs.

Why Hedera Is Positioned for Institutional Adoption

Hedera Hashgraph stands out among Layer 1 networks due to its enterprise governance and design for low transaction costs, near-instant finality, and regulatory collaboration.

Unlike traditional blockchains that rely on proof-of-work or proof-of-stake consensus, Hedera uses a Hashgraph consensus, which allows for thousands of transactions per second as a carbon-negative network.

For financial institutions exploring tokenized collateral or digital MMFs, Hedera offers a balance of performance and trust.

The launch of the Canary HBAR ETF in October 2025 may draw more attention to the Hedera network, acting as an organic advertisement for the network.

As of November 4, 2025, Canary’s HBAR ETF has drawn $70M+ in inflows over the last 4-5 days, with 360M HBAR tokens representing the product.

How Banks Could Use Hedera in Collateral Mobility via Global Digital Finance

Keeping wihtin the context of the GDF report, banks could leverage Hedera for multiple functions, including:

  • Issuing and managing TMMFs on-chain, enabling seamless transfer and settlement under standardized frameworks.
  • Tracking ownership and legal rights of tokenized assets in real time, helping ensure compliance with jurisdictional laws.
  • Automating collateral workflows using smart contracts, improving risk management, and reducing operational limitations.
Hedera was also mentioned with Stellar Global Digital Finance Report
Hedera was also mentioned with Stellar

The Road Ahead: Hedera and the Institutional Tokenization Era

Findings from the GDF report highlight a clear trend towards distributed ledger technology and how the tech is becoming a part of the future financial system.

Hedera Hashgraph is emerging as a capable infrastructure with growing institutional participation. Hedera could soon see adoption by banks seeking compliant, scalable networks for tokenized assets for mainstream use cases, similar to Lloyds Bank’s tokenization event.

By aligning with regulatory standards and offering a sustainable model for digital finance, Hedera is positioned to power the next wave of tokenization where collateral, liquidity, and value move seamlessly across borders.

The post Hedera Highlighted in Global Digital Finance Report: How Is HBAR Powering the Future of MMFs? first appeared on AllinCrypto.

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