Global credit rating giant Moody’s Ratings and tokenization startup Alphaledger have completed a test run showing that municipal bond credit ratings can be embedded into blockchain-based securities, the companies told CoinDesk.
The trial, conducted on the Solana
blockchain, showcases how credit ratings—typically distributed through proprietary data terminals—could be integrated into tokenized assets on public blockchains.
In the proof of concept, a simulated municipal bond was tokenized using Alphaledger’s platform. The bond’s credit rating, provided by Moody’s, was automatically submitted and attached to the token on-chain. The project used an API to move data from Moody’s off-chain systems to Solana’s public blockchain.
For institutional investors navigating decentralized markets, the lack of standardized, trusted information remains a hurdle. By baking a known credit rating into a security token, traders and portfolio managers could hypothetically make more informed decisions about debt instruments in real time.
“We’ve demonstrated a potential scalable model that can unlock liquidity to real world assets by providing investors access to a trusted brand like Moody’s Ratings,” said Alphaledger CEO Manish Dutta.
The test highlights how blockchain tech could complement the existing financial plumbing, as a growing number of traditional finance giants explore ways to use crypto rails for real-world assets (RWA) like bonds, funds and credit.
The process, often called tokenization, promises more efficient operations, interoperability and faster, around-the-clock settlements compared to legacy rails. It’s potentially a huge market: Boston Consulting Group and Ripple projected that tokenized assets could be a $18.9 trillion market by 2033.
Moody’s said it will keep exploring how its ratings can serve digital finance. Future implementations could include other fixed income products such as corporate bonds.
“We continue to embrace innovation in finance and actively explore new avenues for digital finance ecosystem to access our credit assessments,” said Rajeev Bamra, head of strategy for digital economy at Moody’s Ratings.
The test also showcased Solana’s capacity to handle institutional-grade financial data, adding to the network’s growing RWA momentum.
Last month, Solana Foundation partnered with bank-focused blockchain tech firm R3 to bring real-world assets to the network. A Securitize-issued tokenized fund of Apollo credit assets also debuted on Solana-based DeFi protocol, while Centrifuge expanded Anemoy’s $400 million tokenized U.S. Treasury fund on the chain.
Read more: Major TradFi Institutions to Pursue Tokenization Efforts on Solana
