Moody’s has rated the first fund to use Standard Chartered’s SC Ventures’ tokenization platform Libeara.

SGD Delta Fund, a tokenized Singapore-dollar government bond fund, received an AA rating, despite the credit quality of the underlying assets being AAA.

Moody’s said it expects the credit quality of the fund’s portfolio to be in line with an AAA rating. However, it assigned the fund an AA rating, “reflecting the risks associated with the fund manager’s lack of track record in managing unit trusts with similar strategies.”

Tokenized fund issued on a public blockchain

The SGD Delta Fund is issued by Singapore’s FundBridge Capital, which is the first fund manager to use the Libeara tokenization platform.

FundBridge Capital will issue the tokenized fund units on the Ethereum and Stellar blockchains.

The fund will primarily invest in high-quality Singapore government securities. “The Fund will issue tokenized units which are digital representation of units in the fund registered on a blockchain. SGD Delta Fund will issue its units in tokenized form on public blockchains, Ethereum ETH -5.96% and Stellar,” the Moody’s rating report said.

The report added that tokenization on a public blockchain, “will increase transparency and enable whitelisted investors to exchange tokenized units between themselves.”

Interest in tokenization increasing

SC Ventures launched the Libeara tokenization platform in November. Libeara then partnered with FundBridge Capital to help create the tokenized Singapore-dollar government bond fund for accredited investors.

The new tokenization platform established by the investment and innovation arm of Standard Chartered Bank had previously undertaken proof-of-concept projects as a finalist in the Monetary Authority of Singapore’s Global Retail CBDC Challenge.

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision