According to Melon Bank in New York, an increasing number of asset management companies are accelerating the Fund ' s monetization project, with a focus no longer limited to money market funds, and ETF being a layout. Although regulatory, trading infrastructure and secondary market arrangements are still not fully clear, many agencies have chosen to advance their products.
ETF monetization into the exercise phase
Ben Slavin, Director of ETF Operations, Melon Bank, New York, states that there are a number of programmes in the market to monetize ETFs. Large institutions, including Belet, Franklin Templeton, are also looking at ways of placing traditional financial products on block-chain networks.
The so-called monetization of funds is usually expressed in digital currency to enable them to hold and transfer in chains. Wall Street agencies are generally of the view that such products could become new distribution channels for traditional investment products in the future, with longer trading times, faster settlement efficiency and a broader cross-border reach.
The agency is worried about missing the early window.
Slavin stated that one of the central reasons for the speed of client advancement is the desire to take up market positions as soon as possible and thereby attract new assets. Even if existing rules and infrastructure are not yet fully developed, many institutions still wish to move their products to the market as soon as possible.
He mentioned that the current market interest was clearly beyond the cash management category. The firm judged that the monetization fund was not just a technical experiment, but was moving towards a commercialized formal product.
The unauthorised version of the chain has brought reputational stress.
Another concern on the rise is that some of the well-known ETFs have been made into tradable versions by third parties and are circulating outside traditional financial markets, but the relevant fund issuers are not directly involved.
According to Slavin, hundreds of ETFs have been traded in similar forms in unregulated markets around the world. Since open-traded funds can theoretically be mapped into tokenized versions, distributors may face situations where products are circulated using their brand names without effective oversight.
Such circumstances increase the reputational risk to the institution. Even if there is no formal link between the relevant chain product and the issuer, external investors may link it to the original fund brand. As monetization moves from industry testing to commercial products, regulators are more actively developing their own chain-up strategies.