The distinctive short boxes have grown, a new category of digital financial products that bridge traditional and traditional financing, to reach $ 5.7 billion of assets since 2021, according to the new MOODY report.
The credit rating service sees increasing attention from traditional asset managers, insurance companies and brokerage firms that are looking to provide access to customers between digital markets and digital markets. “Short -long -term liquidity boxes are a small product but it grows quickly,” notes a joint June report with Cointelegraph.
These funds, which are usually supported by the US cabinet, or other low -risk assets, are similar to traditional money market boxes but are used by Blockchain to release and manage bridal stocks, allowing actual time settlement. Federal Reserve data shows that the US market funds in the United States carry about $ 7 trillion of total assets starting from December 2024.
According to MOODY’s, emerging usage cases may include improving the return on institutional investors against Stablecoins, liquidity management of insurance companies, and their use as a guarantee in trading and lending processes.
“We expect AUM to grow from this space because most of the major brokerage firms, private banks and assets that offer digital assets are likely to use a cash product like a short -term liquidity box that is unique to transfer the irregularly invested cash to the return product.”
A handful of players lead the sector’s growth. The Blackrock Digital Liquidity Fund tops the asset package of $ 2.5 billion, followed by the Franklin Timbalon government fund in UNCHEN, at $ 700 million. Among the other main players Superstate, Oondo Finance and Circle, each of which runs between $ 480 million and $ 660 million.
Companies are also looking for a distinctive symbol as a tool to reach wider markets. The German protocol Midas recently announced a symbolic certificate supported by the US Treasury bills for European investors, providing exposure to government bonds loaded with no minimum investment required.
In May, the Robinhood brokerage company took a similar step to bring in Europe’s exposure to American markets. In addition, the company recently submitted a proposal to the US Securities and Stock Exchange Committee (SEC) for an organizational framework for the country’s distinctive symbol. According to the CEO of Robinhood Vlad Tenev, “The distinctive symbol is a new model for the customization of institutional assets.”
Besides the risks of credit and typical liquidity of the money market tools, the distinctive money also faces the weaknesses associated with Blockchain technology, the report shows. These include smart nodes, electronic threats, network availability and organizational uncertainty.
“[…] The risk of asset representation may arise from contradictions between Blockchain record and other shareholders ’records of shares.
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