Tokenization Growth Depends on Developing Blockchain-Powered Secondary Markets: Insights from Moody's
Thursday, 18 April 2024, 13:00
Tokenization Growth and Secondary Markets
The tokenization growth trajectory is closely intertwined with the development of blockchain-powered secondary markets. Without robust secondary markets, the potential of tokenized assets remains limited. These markets are essential for liquidity, price discovery, and overall market efficiency.
Risks and Challenges
- Insufficient Liquidity: Limited secondary market liquidity affects the tradability of tokenized assets.
- Market Fragmentation: Lack of standardized platforms leads to market fragmentation and inefficiencies.
- Regulatory Uncertainty: Evolving regulations pose challenges for the widespread adoption of tokenized assets.
Moody's analysis stresses the importance of addressing these issues to foster the growth of tokenization and blockchain-powered markets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.