Wednesday, November 20, 2024

Moody’s Vouches For Effectivity Advantages Of Tokenization

Legacy monetary establishments proceed to pay attention to the rising variety of conventional belongings being introduced on-chain. In a brand new report, Moody’s, the funding danger evaluation agency, highlighted the rising groundswell of mainstream asset tokenization.

In a Jan. 15 report, Moody’s mentioned the worth of tokenized funds grew from $100M at the beginning of 2023 to round $800M right this moment, propelled by the rising tokenization of U.S. treasuries.

Moody’s mentioned belongings are being introduced onto each private and non-private blockchains. Examples embrace Franklin Templeton’s U.S. Authorities Cash Fund extending from Stellar onto Polygon, Backed Finance launching a tokenized short-term U.S. treasury bond ETF, and UBS Asset Administration deploying a tokenized cash market fund (MMF) on Ethereum.

“By tokenizing MMFs, issuers can mix the steadiness of MMFs with the technological benefits of stablecoins,” Moody’s mentioned. “Moreover, functions of tokenized MMFs lengthen past mere buying and holding till maturity, suggesting the potential for a extra numerous vary of makes use of.”