According to a report by CoinDesk, analysts from Moody’s Investors Service, the international credit rating agency, stated in a report released on Thursday that blockchain-driven secondary markets help expand the coverage of tokenized assets.
The analysts pointed out that although financial institutions and governments have begun 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 seen significant growth.
The report states that blockchain and tokenization bring “significant innovation” to the structure of secondary markets, which could improve liquidity management for blockchain-based securities, enhance accessibility to market data, and facilitate real-time settlement.
While these blockchain markets are expected to bring innovation, the report warns that they still face technological and regulatory barriers. Moody’s report points out:
Related reports: “BlackRock’s First Tokenized Fund Attracts $245 Million, Second Only to Franklin’s Similar Fund Product,” “BIS and Central Banks Launch ‘Project Agorá’ to Explore Cross-Border Payment Tokenization,” “Moody’s: Growth in Adopting Tokenized Funds Brings Technology Risks.”
