Moody's explores risks of fund tokenization. It downgraded one already - Ledger Insights - blockchain for enterprise

Moody's explores risks of fund tokenization. It downgraded one already - Ledger Insights - blockchain for enterprise

Yesterday Moody’s published an analysis of fund tokenization, drawing from its experience in assessing three tokenized money market funds. Of those three, only one lacks a strong link to a traditional financial institution. That one was downgraded, perhaps relating to one of its co-founders departing under a cloud. We’ll explore that and another related controversy. […] The post Moody’s explores risks of fund tokenization. It downgraded one alre…

Key points of the news: Moody’s warns that the rapid expansion of tokenized funds exposes the system to operational, legal and technological security risks. The lack of experience of managers and the use of unlicensed public blockchains increase vulnerability to failures and attacks. They recommend allowing redemptions in both fiat and stablecoins and strengthening legal documentation according to each jurisdiction. The tokenization of funds is …