Moody’s AA Rating for SGD Delta Fund on SC Ventures’ Libeara Platform
Moody’s has given an AA rating to the SGD Delta Fund, which is the first fund to utilize Standard Chartered’s SC Ventures’ Libeara tokenization platform. Despite having underlying assets with AAA credit quality, Moody’s decision reflects caution due to the limited track record of the fund manager in managing similar unit trusts. The tokenized Singapore-dollar government bond fund, offered by FundBridge Capital on Ethereum and Stellar blockchains, primarily invests in high-quality Singapore government securities.
Fund’s Credit Quality and Manager’s Experience
Moody’s expects the fund’s credit quality to meet AAA standards but emphasizes that the lack of experience of the fund manager affects the rating. The use of Ethereum (ETH) and Stellar (XLM) blockchains for issuing tokenized units is seen as innovative and promotes transparency and ease of exchange among whitelisted investors.
Increasing Interest in Tokenization
The launch of SC Ventures’ Libeara platform in collaboration with FundBridge Capital indicates a growing interest in tokenization. This platform, developed by Standard Chartered Bank’s investment and innovation arm, demonstrates their commitment to advancing blockchain technology. Standard Chartered Bank has also participated in the Monetary Authority of Singapore’s Global Retail CBDC Challenge.
Hot Take: Moody’s AA Rating Reflects Caution for SGD Delta Fund
Moody’s recent AA rating for the SGD Delta Fund on SC Ventures’ Libeara platform highlights both the potential and challenges of tokenization. While the underlying assets have a strong credit quality, Moody’s decision reflects concerns about the limited track record of the fund manager. However, this rating does not diminish the significance of using Ethereum and Stellar blockchains for issuing tokenized units, which enhance transparency and facilitate exchanges among whitelisted investors. The launch of SC Ventures’ Libeara platform in collaboration with FundBridge Capital further underscores the increasing interest in tokenization and Standard Chartered Bank’s commitment to advancing blockchain technology.
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