Tokenized Funds Methodology

Methodologies Tokenized Funds
1

Introduction

The Credora Tokenized Investment Funds Methodology is a comprehensive framework designed to assess credit risks associated with tokenized investment funds. The methodology assesses the risk of credit events or operational failures driving losses to the fund’s net asset value (NAV). These tokenized investment funds include traditional investment fund characteristics such as bankruptcy-remoteness and legal segregation of assets. The scope includes:

  • Tokenized Money Market Funds: Invest in short-duration, high-quality instruments such as Treasury bills or repurchase agreements.
  • Tokenized Fixed-Income Investment Funds: Invest in a range of fixed-income securities, including government and corporate bonds, with varying levels of duration and credit quality.
  • Other Yield-Bearing Tokenized Funds: Include tokenized funds that deploy investor capital in structured, yield-generating strategies.

Key Sections

Below is an overview of the sections covered in the methodology:

  1. Anchor PD: Combines Asset Quality and Custody Risk, leveraging outputs from relevant sub-methodologies.

    • Asset Quality: Evaluates the quality of reserve assets depending on the type of stablecoin.
    • Custody Risk: Evaluates the risks associated with the custody of reserve assets.

  2. Calibration Layer Modifiers: Applies Tokenized Fund Modifiers to account for general and specific risks which are not fully captured by the Anchor PD, including the following.

    • Regulatory Oversight
    • Fund Transparency
    • Management Experience
    • Assets Under Management
    • Smart Contract Risk
    • Redemption

Access the Full Documentation

You can view the complete and detailed Stablecoin Methodology on GitBook.

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