Moody’s gives SGD Delta Fund on Libeara tokenization platform AA rating

Moody’s Investors Service, a financial services company, has given a AA rating to SGD Delta Fund, a Singapore-dollar fund that invests in government securities. The fund, which is issued by FundBridge Capital in Singapore, makes use of Standard Chartered’s Libeara tokenization platform, representing an innovative move within the industry. Investors in the fund will use the XSGD stablecoin to subscribe to the tokenized units on Ethereum and Stellar public ledgers. Moody’s examined the underlying assets and assigned the fund an AA rating, but also noted reservations about its small size and lack of a previous track record in operating a similar fund. Moody’s report also raised questions about the robustness of blockchain for bond issuance, highlighting potential risks such as cyber attacks and governance changes. Despite these concerns, the report acknowledged the efficiency and cost-saving properties of blockchain, as well as the increased transparency and ability for whitelisted investors to exchange tokenized units. To mitigate risks associated with blockchain-based issuances, the fund is only open to accredited institutional investors and interacts and invests with fiat currency. Additionally, an off-chain investor register will be maintained by the fund’s administrator, Vistra Alternative Investments, in case of any issues with Libeara.