Moody's: Tokenized funds bring technological risks alongside growth

ChainCatcher news, according to a report by CoinDesk, the credit rating agency Moody's Investor Services issued a report on Monday warning that the adoption of tokenized investment funds is on the rise, but the "track record of technology providers is limited," leading to increased risks.

It is reported that tokenized funds are investment funds whose units are digitally represented using Distributed Ledger Technology (DLT). According to Moody's DeFi and Digital Assets team report, the increasing adoption of tokenized funds—primarily driven by tokenized funds investing in government securities (such as bonds)—marks the untapped market potential.