The global credit giant Moody’s Ratings and Tokenization Startup Alphaledger has completed a trial showing that the credit ratings of municipal bonds can be integrated into blockchain -based titles, Coindesk companies told Coindesk.
The trial, conducted on the Solana
Blockchain, shows the way in which credit dimensions – typically distributed via proprietary data terminals – could be integrated into tokenized assets on public blockchains.
In the proof of concept, a simulated municipal link was tokenized using the Alphaledger platform. The credit rating of the obligation, provided by Moody’s, has been automatically subjected and attached to the chain token. The project used an API to move data from Moody’s out chain systems to Solana’s public blockchain.
For institutional investors who sail on decentralized markets, the lack of standardized and reliable information remains an obstacle. By making a credit rating known in a security token, traders and portfolio managers could hypothetically make more informed decisions on real -time debt instruments.
“We have demonstrated a potential evolutionary model that can unlock liquidity to real assets by offering investors access to a confidence brand such as Moody’s notes,” said Alphaledger CEO Manish Dutta.
The test underlines how blockchain technology could complete the existing financial plumbing, because an increasing number of traditional financing giants explore the means to use cryptographic rails for real assets (RWA) such as obligations, funds and credit.
The process, often called tokenization, promises more effective operations, interoperability and faster establishments, inherited rails. This is potentially a huge market: Boston Consulting Group and Ripple have planned that token workers could be a market of 18.9 billions of dollars by 2033.
Moody’s said he would continue to explore how his notes can serve digital finance. Future implementations may include other fixed income products such as companies’ obligations.
“We continue to adopt innovation in finance and actively explore new paths for the digital finance ecosystem to access our credit assessments,” said Rajeev Bamra, head of the digital economy strategy at Moody’s Ratings.
The test also presented Solana’s ability to manage institutional quality financial data, adding to the Rwa increasing momentum of the network.
Last month, the Solana Foundation joined the Blockchain Technology Company focused on R3 banks to provide real assets to the network. A fund tokenized by the security of Apollo credit assets also made its debut on the DEFI protocol based in Solana, while Centrifugere enlarge the US Treasury Fund of $ 400 million in the channel.
Read more: Main tradfi institutions to continue tokenization efforts on Solana
