The first tokenized fund using Standard Chartered’s SC Ventures’ platform Libeara has been rated by Moody’s. The SGD Delta Fund, a tokenized fund consisting of Singapore-dollar government bonds, received an AA rating from Moody’s, despite the underlying assets holding an AAA credit quality. This rating adjustment by Moody’s reflects their consideration of risks associated with the fund manager’s experience. FundBridge Capital, the issuer of the SGD Delta Fund, is leveraging the Libeara platform for the first time, signaling a significant merge between traditional finance and blockchain technology.
A leap into blockchain for bond investments
This pioneering move by FundBridge Capital involves issuing the SGD Delta Fund on the Ethereum and Stellar blockchains. By tokenizing fund units, this approach promises enhanced transparency and ease of exchange among whitelisted investors. Tokenization, a process of converting rights to an asset into a digital token on a blockchain, represents a significant shift in how investments in government securities can be handled. The Moody’s report highlights this innovative step, emphasizing the potential for increased transparency and investor engagement through this blockchain-based approach.
SC Ventures and the rise of tokenization platforms
The launch of the Libeara tokenization platform by SC Ventures in November marked a crucial step forward in the intersection of blockchain technology and traditional investment structures. Partnering with FundBridge Capital to create this tokenized fund for accredited investors, SC Ventures demonstrates the growing interest in tokenization within the financial sector. As an investment and innovation arm of Standard Chartered Bank, SC Ventures has been at the forefront of exploring and implementing blockchain technology in finance, including participating in the Monetary Authority of Singapore’s Global Retail CBDC Challenge.
Overall, the rating of the SGD Delta Fund by Moody’s signifies a new era where blockchain technology coexists with traditional financial instruments and enhances them. This integration presents a unique opportunity for investors, offering a blend of the security of government bonds and the advantages of blockchain technology.
