Tokenized Funds: Moody’s Identifies Unexplored Potential
Moody’s, a financial services company, has expressed that the adoption of tokenized funds is enhancing the efficiency of investment in government bonds and recognizes significant unexplored potential in this area.
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Moody's, a financial services company, has expressed that the adoption of tokenized funds is enhancing the efficiency of investment in government bonds and recognizes significant unexplored potential in this area.
In its report, Moody's highlighted that in 2023, the issuance of tokenized funds on public blockchains escalated from $100 million to $800 million. The most substantial issuance was undertaken by Franklin Templeton.
This surge is likely driven by the growing appeal of investments in government securities, which have become more attractive due to the recent rise in the U.S. federal funds rate.
Tokenized funds offer improved liquidity in the market, reduced costs, and the possibility of fractionalization. However, they also bring about risks and complexities related to technology for traditional investors, necessitating a certain level of expertise on their part.
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