Moody’s Rates First Tokenized Fund on Standard Chartered’s Libeara Platform

January 5, 2024

By Sharan Kaur Phillora

Standard Chartered’s innovative wing, SC Ventures, has launched Libeara, a tokenization platform to revolutionize traditional finance. This Singapore-based startup marks a significant stride into the future of blockchain-enabled financial services. Moody’s recently rated the first fund using Libeara’s platform, FundBridge Capital’s SGD Delta fund, with an AA rating. 

Here’s what we know:

Focusing on high-quality Singapore government securities, this fund signifies a pioneering move in the tokenized fund space, being issued on Ethereum and Stellar public blockchains. Despite the underlying assets’ top-notch credit quality, the rating reflects several considerations, including FundBridge’s inexperience, Libeara’s emerging track record, and the innate technological and governance risks tied to public blockchains.

Libeara’s mission is to democratize investment by allowing the deployment of financial assets on-chain or the issuance of regulated security tokens. With a name blending the notions of liberty and treasury, it’s a testament to the platform’s commitment to opening new investment avenues. 

The platform draws upon a suite of partnerships, ranging from digital custody providers like Fireblocks to anti-money laundering experts like Chainalysis, showcasing a comprehensive approach to secure and efficient tokenization. This move by Standard Chartered, through SC Ventures, reflects a broader trend in the financial industry embracing blockchain’s potential to innovate and streamline operations. The push into tokenization is a response to both the competitive threat from fintech startups and the growing acceptance of distributed ledger technologies.

By setting benchmarks against international standards and seeking ratings from reputed agencies, Libeara, and similar platforms are experimenting with technology and ensuring that the new wave of financial instruments meets rigorous, investor-friendly criteria. This dual approach of innovation and credibility might set the standard for future financial instruments, signaling a transformative shift in how investments, assets, and securities are managed and traded globally.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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