Moody’s Report: Blockchain Secondary Market Can Expand Tokenized Asset Scope
According to a report released on Thursday by Moody’s Investor Service, analysts from the company state 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 engage in the issuance of tokenized assets (such as the $100 million green bond issued in Hong Kong last year), there is still a lack of secondary markets available for trading 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 innovation” to secondary market structures. 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 to certain asset classes, inefficient settlement processes, and high operating costs.” Despite the promise of innovation in these blockchain markets, the report warns that there are also technological and regulatory barriers.
️Further reading:
Assets also have digital avatars! How does “tokenization” disrupt finance? A comprehensive analysis of the RWA wave
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Proofread/edit: Gao Jingyuan
