Moody's: Tokenized fund adoption grows while bringing technology risks

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 "limited track record" of technology providers is increasing risk. Tokenized funds are investment funds whose units are represented digitally using distributed ledger technology (DLT). According to Moody's DeFi and Digital Assets team's report, an increasing number of tokenized funds are being adopted - primarily driven by tokenized funds investing in government securities such as bonds - signaling untapped market potential.