Moody’s warns of cyber risks posed by digital bonds amid growing popularity in financial sector

A new report from Moody's Investors Service identifies cyber risks in issuing digital bonds and calls for the implementation of cyber risk prevention mechanisms among financial sector participants, including establishing effective governance to enforce accountability.

“A successful cyberattack on the digital bond ecosystem could have immediate and far-reaching consequences for different stakeholders, but most affected would be bond investors and digital bond issuance platform operators,” Moody’s says in a report released Monday.

Digital bonds are issued and managed using...