A prominent crypto analyst has highlighted a significant narrative surrounding Hedera, suggesting that banks are more concerned with concrete outcomes than the underlying blockchain technology itself. This trend could position Hedera’s HBAR at the forefront of the emerging real-world asset (RWA) market boom.
The discussion is anchored by a recent Forbes article authored by Hedera’s CEO, Eric Piscini, along with insights from the company’s co-founder, Dr. Leemon Baird. The analyst indicates that these insights are manifesting in real-world scenarios.
One pivotal assertion made by Piscini, emphasized in coverage by Sin City Crypto, is that financial institutions are not seeking ways to adopt blockchain technology for its own sake. Instead, they are focused on deploying innovative business solutions that enable rapid collateral movement, reduce capital constraints, and provide unique products that are not easily replicable. As stated in Piscini’s Forbes quote, “A bank does not want a blockchain. A bank cannot tokenize a collateral portfolio without doing so reveals its strategy… It cannot run funding workflows on a platform where metadata or behavioral patterns are exposed to the public.”
This notion raises a critical point: without adequate privacy protections, large-scale tokenization efforts may falter and remain merely theoretical. The video commentary posits that privacy should be viewed as a primary obstacle in the path of tokenizing RWAs, rather than demand.
Dr. Leemon Baird’s views from a December 2024 discussion further emphasize the need for privacy in maintaining sensitive financial data. He observes that certain activities must be enclosed within private networks while still leveraging the public Hedera ledger for necessary transactions. For instance, he describes scenarios where banks might conduct operations within a private environment before making selective transactions on the public network for settling stablecoins or documenting transactions.
Regulatory factors also come into play, as certain workflows require operations to occur on machines located within specified jurisdictions—an assurance that a decentralized public network cannot universally provide but that a private network can.
The analyst introduces the concept of “HashSpheres,” depicting various environments that encompass both private and hybrid models. These configurations would create an interoperable framework for moving assets, further aligning Hedera with platforms like Chainlink that connect private and public systems.
From a trading perspective, the analyst identifies an inverse head and shoulders pattern on HBAR’s 8-hour chart, hinting at a potential price increase beyond 11 cents if this pattern materializes. They suggest that a price entry point around $0.075 is already appealing for long-term investment, with an ideal target of around $0.05 considered a “Pico bottom.”
Strategically, the commentary argues that Hedera remains undervalued given its institutional potential, governance structure, and the rising importance of privacy in blockchain applications. If the perspectives of Piscini and Baird hold true, that banks will shy away from RWAs on completely transparent chains, then platforms offering robust privacy features alongside public settlement capabilities stand to gain a significant market share. The analyst positions Hedera alongside Ethereum and Solana in this context, especially as privacy elements are integrated.
For investors, the main takeaway revolves around the prospect of RWAs, supported by privacy-focused infrastructure, serving as a more substantial adoption driver for HBAR than traditional payment methodologies.
In summary, the analysis underscores that addressing the privacy concerns of institutions could be pivotal for Hedera. As the RWA market, projected to grow to several trillion dollars by 2030, takes shape, institutional trepidations surrounding strategy exposure on public ledgers will require innovative solutions to activate widespread adoption.
