The Bridge Conference

[Recap] The Hedera Network – Tokenizing the Future: How The World’s Largest Financial Firms are Utilizing Blockchain to Gain a Strategic Advantage – Recorded at The Bridge

By Alex Green
November 29, 2023

On November 3rd, 2023, Shayne Higdon, Co-Founder & Chief Executive Officer of The HBAR Foundation presented on The Hedera Network - Tokenizing the Future: How The World’s Largest Financial Firms are Utilizing Blockchain to Gain a Strategic Advantage at The Tie's inaugural crypto corporate access event, The Bridge. 

Hedera is a smart contract platform that enables high transaction throughput via a hashgraph consensus mechanism, which diverges from traditional blockchain by utilizing a Directed Acyclic Graph (DAG) instead of blocks. Guiding Hedera is the Governing Council, composed of 29 global, diverse organizations, who safeguard network stability and security while making future-oriented decisions.

The presentation focused on the following key topics:

  • Tokenization & Stablecoins
  • Rewiring Card Payments
  • EVM Compatibility & Real-Time Settlements

Watch the full replay below:

Tokenization & Stablecoins

Shayne began the presentation sharing “real world use cases solving real problems” using blockchain technology.  Abrdn, a financial services company with over £350 billion in assets under management, tokenized their money market fund and the assets in the fund on Hedera. The tokenized assets are listed on Archax, a regulated digital asset exchange, providing investors with enhanced transparency, verifiable pricing, increased liquidity, and streamlined access to these investment opportunities.

Hedera launched Stablecoin Studio in September 2023 to simplify stablecoin creation and management. This software development kit (SDK) and command-line interface (CLI) facilitate the minting, creation, pausing, and management of stablecoins on the Hedera network. Organizations seeking to create and manage stablecoins can benefit from Stablecoin Studio's ease of use, comprehensive features, and integration with the Hedera network, which offers fast transaction speeds and low fees.

Utilizing Stablecoin Studio, Shinhan Bank, a Korean financial institution, has developed and tokenized a stablecoin for international remittance on the Hedera network. This approach has yielded significant improvements in processing times, enhanced transparency and integrity of the system, and a substantial reduction in transaction costs from over $30 to a mere 5 cents.

Additionally, Shayne shared Hedera’s focus on a proof-of-reserve solution for stablecoins. This cryptographic mechanism empowers users to validate that a stablecoin issuer holds adequate reserves to support circulating stablecoins. Establishing trust in stablecoins is crucial, and proof of reserve plays a pivotal role in preventing over-issuance.

Rewiring Card Payments 

Hedera is working on a solution to rewire card payments. Rewiring card payments is the process of developing and implementing new ways to process card payments that are faster, more transparent, and more efficient than the current system. This can be done using a variety of technologies, including distributed ledgers, blockchain, and smart contracts.

The current card payment system is slow, expensive, and prone to fraud. It can take several days for merchants to receive payments for transactions that have already been processed. Additionally, merchants pay high fees to process card payments. Rewiring card payments can help to address these challenges by making card payments faster, cheaper, and more secure.

Hedera provides a fast, transparent, and efficient way to process card payments. It is a public distributed ledger, which means that all transactions are recorded on a blockchain. This transparency makes it easier to track and audit card payments, which can help to reduce fraud and errors. Hedera's transaction fees are low, and its smart contracts can be used to automate many of the tasks involved in processing card payments, which can further reduce costs and improve efficiency.

The Use Case for Building on Hedera

Hedera EVM compatibility is a key feature that allows developers to build decentralized applications (dApps) on Hedera using the Ethereum Virtual Machine (EVM). This means that existing dApps built on Ethereum can be easily ported to Hedera, and developers can use their existing Ethereum skills and tools to build new dApps on Hedera.

Hedera's real-time settlement capabilities, encompassing both instant transactions and streaming settlement, make it a good choice for international remittances and businesses requiring rapid transaction processing. This real-time settlement feature ensures that transactions are finalized immediately, eliminating delays and fostering efficient payment processing. For businesses handling a high volume of transactions in real-time, streaming settlement offers the advantage of settling transactions as they occur, streamlining operations, and enhancing efficiency.

Unlike traditional blockchain networks, which are controlled by a small group of developers or a single entity, the Hedera Governing Council is made up of 39 diverse organizations from various industries and geographies. This decentralized approach ensures that no single entity wields excessive power over the network's direction, fostering a more equitable and democratic governance model.

Watch the full replay below:

Disclaimer: This report is for informational purposes only and is not investment or trading advice. The views and opinions expressed in this report are exclusively those of the author, and do not necessarily reflect the views or positions of The Tie Inc. The Author may be holding the token or using the strategies mentioned in this report.  You are fully responsible for any decisions you make; The Tie Inc. is not liable for any loss or damage caused by reliance on information provided. For investment advice, please consult a registered investment advisor.

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Alex Green

Alex Green

Alex Green, Author at The Tie

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