Moody's: Tokenization growth depends on developing blockchain-powered secondary markets

PANews, April 18, according to CoinDesk, analysts from Moody’s Investors Service said in a report released on Thursday that blockchain-driven secondary markets can help expand the scope of tokenized assets. The report notes that while financial institutions and governments have begun to dabble in the issuance of tokenized assets (such as Hong Kong’s US$100 million green bond issued last year), there is still a lack of secondary markets for trading after the initial issuance, which limits the tokens. adoption.

The report said that there has been significant growth in the blockchain-driven secondary market, that blockchain and tokenization have brought "significant innovation" to the secondary market structure, and that the development of blockchain-based secondary markets for securities can improve flows. security management, enhance market data accessibility and facilitate instant settlement. “These blockchain-powered secondary markets address several perceived shortcomings of traditional secondary markets, including limited accessibility to certain asset classes, inefficient settlement processes, and high operational costs,” the report states. Although these areas The blockchain market promises innovation, but the report warns that there are also technical and regulatory hurdles.