Moody’s: Tokenization Growth Depends on Blockchain-driven Secondary Market Development

Moody's: Tokenization Growth Depends on Blockchain-driven Secondary Market Development

Moody's: Tokenization Growth Depends on Blockchain-driven Secondary Market Development

According to a report by CoinDesk, analysts from international credit rating agency Moody’s Investors Service stated in a report released on Thursday, 18th, that blockchain-driven secondary markets help expand the coverage of tokenized assets.

The analysts pointed out that although financial institutions and governments have started to venture into the issuance of tokenized assets (such as the $100 million green bond issued in Hong Kong last year), these assets lack tradable secondary markets after the primary offering, which limits the adoption of tokenization. The analysts added that blockchain-driven secondary markets have shown significant growth.

The report noted that blockchain and tokenization bring “significant innovation” to the structure of secondary markets, and the development of secondary markets for blockchain-based securities could improve liquidity management, enhance accessibility to market data, and facilitate real-time settlements.

The report stated:
“While these blockchain markets are poised for innovation, the report warns that they still face technological and regulatory obstacles.” The Moody’s report pointed out:

Related reports: “BlackRock’s First Tokenized Fund Attracts $245 Million, Second Only to Franklin’s Similar Fund Product” “BIS and Multiple Central Banks Launch ‘Project Agorá’ Initiative to Explore Cross-Border Payment Tokenization” “Moody’s: Growth in Adoption of Tokenized Funds Brings Technological Risks”