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Legacy financial institutions continue to take note of the increasing number of traditional assets being brought on-chain. In a new report, Moody’s, the investment risk assessment firm, highlighted the increasing groundswell of mainstream asset tokenization.

In a Jan. 15 report, Moody’s said the value of tokenized funds grew from $100M at the start of 2023 to around $800M today, propelled by the increasing tokenization of U.S. treasuries.

Moody’s said assets are being brought onto both public and private blockchains. Examples include Franklin Templeton’s U.S. Government Money Fund extending from Stellar onto Polygon, Backed Finance launching a tokenized short-term U.S. treasury bond ETF, and UBS Asset Management deploying a tokenized money market fund (MMF) on Ethereum.

“By tokenizing MMFs, issuers can combine the stability of MMFs with the technological advantages of stablecoins,” Moody’s said. “Additionally, applications of tokenized MMFs extend beyond mere purchasing and holding until maturity, suggesting the potential for a more diverse range of uses.”