Global credit rating giant Moody's Ratings and tokenization startup Alphaledger have completed a test run

input: 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

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, involved simulating a municipal bond that 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.

The lack of standardized, trusted information is often cited as a key challenge for institutional investors navigating decentralized markets. By baking a known credit rating into a security token, traders and portfolio managers could make more informed decisions about debt instruments in real time, according to the companies.

"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. A growing number of traditional finance giants are exploring 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.