Rating agency Moody's gives praise to blockchain but warns of devs

27 Apr, 2019
by Alberto Arnaldo
Rating agency Moody's gives praise to blockchain but warns of devs

Leading rating agency Moodys has just published a report entitled “Structured Finance - Global: Blockchain Improves Operational Efficiency For Securitisations, Amid New Risks”.

The document, which was first reported by Financial News London, considers that blockchain presence in securitization is nowadays on its first steps regardless of the initiatives being led by banks and other actors from the financial sector.

Other than the general blockchain state-of-the-art review, an interesting call from the report points out a weakness in excessive development centralization. In Moody’s opinion, if multiple actors are to rely on the same development studio risks could be introduced due to a “systemic component”:

“They may be either closely linked or identical with the originator, or independent third-party service providers, which could lead to a certain degree of counterparty concentration risk.”

An example of a way to avoid a similar concurrence is the building of Ethereum 2.0 by different studios at the same time, but without sharing their work with each other.

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