And as we move, thank God that the universe is providing us the answer piece by piece, one at a time, every right things happen at the right moment.

Reading Notes:

Yes, there are no ready-to-go legal models built for corporates to attract or borrow funds from DeFi protocols on the market today.

But it’s possible to build one with minimal effort, as the benefits of DeFi borrowing easily cover the efforts of building such a system.

DeFi might be able to provide borrowing on perfect terms for corporate institutions, which is something that might make them consider entering the market.

Meanwhile, corporate institutions will be willing to provide several types of stable assets to be used as collateral for their loans.

However, there is a real need for real-world assets to be used as collateral in DeFi protocols to prevent more market falls in the future, fixing the over-collateralization issue along the way.

Opinion from the author:

Until new regimes for the offering of tokenized instruments are built (and there are no bright signs in this direction), I believe real-world assets tokenization in a form of an STO will still be limited to closed offerings with no attention from the global market.

Artem Tolkachev is the founder and CEO of Tokenomica. For over six years, Artem has been a key blockchain and tokenization opinion leader in the CIS region. Since 2011, he has been an intellectual property and information technology lawyer and entrepreneur. In 2016, Artem founded and headed Deloitte CIS Blockchain Lab. As part of that initiative, he led a range of innovative projects involving the implementation of enterprise blockchain solutions, tokenization of real-world assets, tax and legal structuring of security token offerings, development of cryptocurrency, and blockchain legislation.

https://cointelegraph.com/news/why-defi-plus-asset-tokenization-will-take-crypto-to-new-heights

Notes: Less regulatory uncertainty, a developed market infrastructure, and less risk surrounding security will bring the crypto market cap to $2T and above.

The post DeFi and Asset Tokenization appeared first on Blockchain Insider.

1. Real Estate Blockchain Firm Ubitquity to Build Tokenized Title Platform

2. Mobile DeFi and the Shift Toward Self-Sovereignty

3. Russia Is Set to Create a New Regime for Tokenized Securities

4. Title Token for Blockchain Estate Registry, Part 3

Reading Notes

Real Estate Blockchain Firm Ubitquity to Build Tokenized Title Platform

• Having tokens represent a property, along with records of conveyance stored on a blockchain, creates “huge efficiencies for the abstract process.”
• With the technology closing agents can better avoid fraud since there is only a single source of truth and reconciliation is no longer needed.

Mobile DeFi and the Shift Toward Self-Sovereignty

• Many speculate that mainstream adoption of cryptocurrency is dependent solely on improving ease of access and user experience. In reality, there’s an even bigger obstacle: a mentality shift.
• Self-sovereignty and personal autonomy are the endgame of this technology, and with that goal comes a significant increase in personal responsibility for one’s funds.
• The legacy system takes away your autonomy and replaces it with convenience, offering useful tools related to fraud protection and password management. By comparison, cryptocurrencies, decentralized finance and other forms of distributed technology fall on the other end of that spectrum, providing the ability to have true ownership of one’s worth.
• The liberating elements of crypto and financial freedom are promising but intimidating since security is passed from the hands of a third party directly into the hands of the consumer.
• Crypto, DeFi and decentralized applications promise to fulfill the original vision of our connected future, in which users could retain absolute ownership of their funds as they transacted in a global market.
• The key here is offering familiar experiences in line with best practices in crypto security so that the difficult but absolutely necessary shift in mentality is made more palatable.
• The decision to be personally responsible for one’s own wealth should be a burden of diligence, not of exhausting learning experiences.

Russia Is Set to Create a New Regime for Tokenized Securities

• According to the new (Russian) law, digital financial assets, or DFAs, represent digital rights, including monetary claims, the possibility of exercising rights under issuable securities, the right to participate in the capital of a nonpublic joint-stock company, and the right to demand the transfer of issuable securities.
• In a broad sense, this means that DFAs are tokenized securities.
• Basically, the new Russian law regulates the issuance, turnover and offering of tokenized assets.
• DFAs can be only issued on licensed issuance platforms that are operating in full compliance with incredibly strict regulations.
• It’s ironic that with all this time spent to create crypto regulation, there is no crypto regulation. However, Russian legislators managed to create a clear approach to the regulation of tokenized securities.

Title Token for Blockchain Estate Registry, Part 3

• Discussing cross-blockchain protocol that enables the use of ledgers in an interoperable bundle.
• The protocol works as an aggregator of tokens across blockchains.
• The resulting representation of the collected tokens is a logical superstructure across many blockchains — the public registry.
• A government agency, for example, doesn’t exclusively own one public property database, but it literally lives on every user’s machine in the cross-blockchain database.
• A component of governance to address legal issues and enforce lawful decisions – in Title Token for Blockchain Estate Registry, Part 2
• Three fundamental principles for decentralization: Technological pluralism. Technological neutrality. Blockchain agnostic.
• There must be verified digital identities, but without exposing personal data on-chain at the same time. And the answer to that is the combination of old and new technologies.
• Blockchain technology is the perfect solution to develop a new generation of public key infrastructure (PKIs). Think about public certificates as tokens. Similar to creating tokens (certificates) of property, we can also create tokens to certify our identity. If you lose your private key, you will need to contact your certificate authority and ask to update its token of your identitiy (certificate) as invalid.
• To reduce the risks of leaks of personal data from centralized servers, we should use self-sovereign identities.
• Credible public blockchains provide immutable ledgers, which, contrary to traditionally state-owned property registries, enable users to perform peer-to-peer transactions.
• However, blockchains do not require any public agency to maintain the infrastructure, as public ledgers are self-governed.

Title tokens are records that represent legal rights. They are validated on-chain by those whom we trust and delegate this right.

• Contrary to the centralized system, ledgers require everything to be recorded on-chain publicly to take effect, and they do not alter recorded transactions. So, on-chain governance is transparent and accountable.
• This concept can be piloted step-by-step and run parallel to the existing system of public registries.
• The shift will happen when the government that wants to benefit from innovations recognizes the right of citizens to choose between a traditional registry and a blockchain, and it is a fundamental right for the decentralization of governance.

The post ROTD: Tokenized Title Platform, Self-Sovereignty, Tokenized Securities, Title Token for Blockchain Estate Registry appeared first on Blockchain Insider.

Looking at the headlines:

• World Bank Digs Deeper Into DLT and FinTech for Financial Inclusion
• The Suzhou trial – Digital Yuan Being Tested for a Workers’ Subsidies Scheme
• Aussie Crypto Unicorn Raises $160M With ‘Big Four’ Bank Backing
• The launch of 3iQ’s BTC Fund on TSX
• Berlin Real Estate Worth $12M Tokenized for Everyday Investors
• Akon City, a ‘sustainable eco-tourism smart city’ powered by Blockchain technology in Senegal.

Connecting the dots, the Blockchain’s shift from niche financial tool for techies to the mass adoption of digital currencies is happening into the conventional financial sphere. The interaction (blending or convergence?) of the two monetary worlds seems to be progressing positively.

The recent report by World Bank Group and Bank for International Settlements (BIS) further complement the previous report by BIS as CBDC (Central Bank-Issued Digital Currency) Is Well On Its Way.

Payment Aspects of Financial Inclusion Fintech Wheel by World Bank Group

Worth noting is the PAFI Fintech Wheel in the report.

Jolted below notes related to above mentioned headlines, the power to relate is important in getting the bigger picture.

Click on the respective headline to read the original report.

World Bank Digs Deeper Into DLT and FinTech for Financial Inclusion

The World Bank’s fintech-focused report on financial inclusion is not the organization’s first foray into blockchain and associated emerging technologies.

Among major PAFI tools, the World Bank listed distributed ledger technology (DLT), stablecoins, CBDCs and payment tokenization systems, placing them in line with other fintechs like big data analytics and cloud computing.

Combining several technologies, products and access models, the World Bank drew up the so-called “PAFI fintech wheel” to identify fintech developments that are potentially relevant to the payment aspects of financial inclusion.

In the 70-page report, the bank provided a detailed overview of selected advances in technology that are considered to be the most relevant to payments as well as described their applications and associated risks.

The Suzhou trial – Digital Yuan Being Tested for a Workers’ Subsidies Scheme

This month, agencies and enterprises in the Xiangcheng District of Suzhou will reportedly be paying 50% of local workers’ transport subsidies in the new digital currency (also referred to as DC/EP, for “digital currency/electronic payment”).

These patents indicate that the DC/EP adopts a two-layer architecture and two-tier delivery system, which enables licensed third-party payment institutions or banks to participate in secondary issuance of the digital currency.

… the report notes that the currency’s blockchain structure will ensure “traceability, encryption and supervisability.”

Aussie Crypto Unicorn Raises $160M With ‘Big Four’ Bank Backing

In March 2019, Airwallex received a $1 billion valuation — ranking it as Australia’s second unicorn alongside graphic design firm, Canva. Australia is currently home to three unicorns, with aerial imagery company, Nearmap, recently joining the list.

The launch of 3iQ’s BTC Fund on TSX

The launch of 3iQ’s BTC Fund on TSX was a historic event, to say the least.

The listing of a publicly-traded Bitcoin fund on a major stock exchange will serve as an important milestone for the industry as a whole — especially in regard to crypto being viewed as a legitimate asset class by the global investment community.

Currently trading under the name, “The Bitcoin Fund,” the offering has around 1.5 million Class A “QBTC.U” shares available on the Toronto Stock Exchange, or TSX.

At press time, each share is trading for around $12. The price indexes being used by the fund are from crypto data company CryptoCompare and VanEck Europe subsidiary MV Index Solutions.

3iQ is serving as the fund’s investment and portfolio manager.

The Bitcoin Fund is under the custody of the Winklevoss’ exchange Gemini, and thus Tyler and his brother Cameron are invested in the fund’s success.

TSX is Canada’s premier stock exchange, facilitating more than $97 billion worth of monthly trade.

• customer demand for regulated crypto products has been strong across the investing spectrum — be it the retail or institutional investor market.
• as time goes on, market demand for crypto offerings will increase.
• the demand for an easily accessible, securities-based product delivered through traditional channels.

Berlin Real Estate Worth $12M Tokenized for Everyday Investors

Germany’s Black Manta Capital Partners has launched a security token offering (STO) for Berlin real estate worth more than $12 million.

The project is a collaboration with the German real estate firm Tigris Immobilien and includes around 2000 square metres of real estate in total, mostly comprising individual apartments from 40 to 60 square meters in size. Construction is expected to be complete by 2022 and units will be sold to investors and owner-occupiers.

Token holders will share 20% of the sale profits through securitized participation rights. The company said the tokens will enable ordinary investors “to participate in a profitable real estate project normally reserved for professional investors.”

Minimum investment is just €500 (Fractionization / Fractional Ownership)

Blockchain technology is gaining steam in the real estate market with real estate security tokens now representing half of active security token markets and 15% of total volume.

• new “tokenization services” industry to emerge and the crypto custodian market to grow.
• institutional investors require regulated custodians

Akon City, a ‘sustainable eco-tourism smart city’ powered by Blockchain technology in Senegal

Blockchain’s shift from niche financial tool for techies to the mass adoption of digital currencies.

The celebrity singer famous for his “Lonely” song, is not only embark on lighting a million homes project, but also developing Akon City, a ‘sustainable eco-tourism smart city’ in Senegal.

While those listed above are quite a number of positive progress, some news shouldn’t be overlooked, especially when it concerns custodian services and legistration.

Where on the planet is KuCoin?

Unlike Binance, Coinbase and Ripple, KuCoin did not file with the Monetary Authority of Singapore to request a deferral of the requirement to operate without a payments license. Such deferrals allow those companies to operate as payments service providers without a license through July.

Without a license or a deferral, KuCoin cannot legally operate in Singapore. It remains unclear whether KuCoin is nonetheless operating in Singapore or if the exchange is in fact now operating elsewhere.

The post Financial Inclusion in The Fintech Era appeared first on Blockchain Insider.

Some of the points he mentioned was quite alarming, such as the illusion of safety:
– failure is not an option
– we can all win
– it’s all upside
– this is a guaranteed investment

As at 4th May, 2019, nearly 2 years after his sharing, the article that appeared in Coin Telegraph titled “How Security Tokens Can Prevent an Impending Financial Crisis” seems to echo his points with this paragraph:

Sometimes, the unintended consequences of regulation are more damaging than the value proposition of that legislation.

(1) The barriers of entry to securitization markets drove the centralization of issuances to astronomical heights, as a few participants came to dominate the market.

(2) The combination of closed circles and high costs of issuance ran securitized portfolios into the billions and caused a domino effect upon failure.

(3) In addition, a lack of liquidity in private securities markets made it difficult to rebalance or break up portfolios by selling smaller positions to a wider pool of potential buyers — or even by selling individual assets.

Security tokens, assets backed tokens, could be one of the solutions to the shortfall in financial system we have today, as how the authors put it:

Many analysts predict that the majority of financial products will one day be traded on the blockchain as security tokens, with programmable smart contracts — and for good reason: Only security tokens can bring greater transparency, oversight, access and liquidity to the market.

As we are seeing more Blockchain and its practical applications (use cases) being announced, we shall see a more practical approach and implementation of the technology in the financial industry as time goes by. Blockchaining Sukuk should be something to watch out to.

The post Security Tokens and The Illusion of Safety appeared first on Blockchain Insider.