Moody’s invited to analyze Project Guardian tokenization risks

Credit rating giant Moody's announced on Wednesday that the company is collaborating with the Monetary Authority of Singapore's Project Guardian, which is a public-private tokenization partnership aimed at improving market efficiency.

The company plans to provide risk analysis for Project Guardian, which is scheduled to launch in 2022. Specifically, Moody's will focus on fixed income products, including stablecoins, tokenized deposits, scattered funds, and other digital asset securities.

Rajeev Bamra, Moody's digital economy strategy director, said that fundamentally, tokenization combines digitization with physical assets, redefining traditional asset ownership and transaction frameworks. With complex technical frameworks and streamlined or interoperable infrastructure, tokenization has the potential to promote significant growth.