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

Moody's analysts said in a report released Thursday that blockchain-driven secondary markets can help expand the scope of tokenized assets. The report pointed out that although financial institutions and governments have begun to dabble in the issuance of tokenized assets (such as Hong Kong's $100 million green bond issued last year), there is still a lack of secondary markets for trading, which in turn limits the adoption of tokenization. Blockchain and tokenization have brought "significant innovations" to the structure of secondary markets. The development of blockchain-based securities secondary markets can improve liquidity management, enhance market data accessibility and promote instant settlement. (CoinDesk)