Rising Adoption of Tokenized Funds Brings Benefits and Risks, Says Moody's
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Tokenized investment funds adoption is rising, but technology providers have limited track records, increasing risks per Moody's
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Tokenized funds digitally represent investment fund units via distributed ledger technology
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Benefits include improving liquidity, efficiency and transparency in markets
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Tokenized funds have potential beyond enhancing asset liquidity, like serving as collateral
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Additional risks stem from dependence on new technologies like blockchain that have limited track records