Morningstar Launches Ethereum Debt Rating Service
Morningstar Credit Ratings will create a system for evaluating debt securities issued in the form of tokens using funds distributed ledger technologies. This was announced by Morningstar COO Michael Braver in an interview with Forbes on Tuesday..
By to him, new rating service could transform the debt industry valuable papers, valued at $ 117 trillion and managed by various custodians and trusted intermediaries, into a decentralized financial network. He also expects it to help increase legitimacy. digital assets and attract billions of dollars of investment to them.
Morningstar’s ratings arm will publicly rate crypto assets on a 1-5 scale, and the tools for making better investment decisions will be available to paid customers.
The Morningstar system will be based on the Ethereum blockchain. Subsequently, its capabilities will be distributed to other networks. with help oracles. It is expected that the launch of public services will take place before the end of this year.
By its own admission, the company was prompted to create this product by clients who are engaged in the issuance and securitization of debt instruments, in including small business lending service representatives. The company works with both government and corporate bonds, however, the possibilities of its service on the blockchain will be limited by structural debt instruments. Moreover, the solution will allow you to directly connect lenders and borrowers, eliminate custodians and trusted intermediaries from the process, and save up to 500 basis points on transaction fees.
Morningstar does not rule out that it may be contacted by the US Securities and Exchange Commission (SEC) to ensure the reliability of its blockchain instruments. Fintech startup Figure, alternative investment company Cadence and DeFi platform Polymath can become Morningstar’s partners in launching the service..
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