Moody’s Report: Blockchain Secondary Market Expands Tokenized Asset Scope
According to a report released on Thursday by Moody’s Investor Services, analysts from the investment services company stated that blockchain-driven secondary markets can help expand the scope of tokenized assets.
The report points out that although financial institutions and governments have started to venture into tokenized asset issuance (such as the $100 million green bond issued in Hong Kong last year), there is still a lack of tradable secondary markets after the initial issuance, which limits the adoption of tokenization.
The report states that blockchain-driven secondary markets have experienced significant growth, and blockchain and tokenization bring “significant innovations” to the secondary market structure. Developing blockchain-based securities secondary markets can improve liquidity management, enhance market data accessibility, and facilitate real-time settlement.
The report points out, “These blockchain-driven secondary markets address several obvious flaws in traditional secondary markets, including limited accessibility for certain asset classes, inefficient settlement processes, and high operational costs.” Despite the promise of innovation in these blockchain markets, the report warns that there are also technological and regulatory barriers.
️Further reading:
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