Tokenization Growth Depends on Developing Blockchain-Powered Secondary Markets: Moody's
Summary
Moody's Investors Service analysts suggest that blockchain-powered secondary markets can expand the reach of tokenized assets. Tokenization represents real-world assets on a blockchain, allowing large assets to be broken down and represented by multiple tokens. However, there is a lack of secondary markets for tokenized assets after the primary offering. Blockchain and tokenization bring significant innovations to secondary market structures, addressing drawbacks of traditional markets. Despite promises of innovation, there are technological and regulatory hurdles, such as risks associated with smart contracts.
