Moody's Predicts: Tokenization Will Transform Financial Infrastructure, But Banks Won't Be Ousted

Analysis in Three Scenarios

On December 12, rating agency Moody's released an analysis suggesting that while asset tokenization will bring changes to American transaction flows, it is unlikely to significantly diminish the role of existing financial institutions. Over the next few years, the use of tokenization is expected to expand across various areas of financial infrastructure, yet it will not completely replace existing players.

For financial institutions, the expansion of tokenized assets implies an increase in on-chain payment demands...