Notes from Realvision show, The Interview – Crypto · Featuring Carlos Domingo and Santiago Velez:
https://www.realvision.com/shows/the-interview-crypto/videos/tokenized-securities-the-next-generation-of-asset-ownership
Carlos Domingo, CEO of Securitize Inc., joins Santiago Velez, co-founder & R&D division lead for Block Digital, to discuss security tokens, what can be tokenized, and the future of the crypto space.
Tokenized Securities: The Next Generation of Asset Ownership
For the first time in history we have securities and cash sitting on the same ledger.
The fact that this became digitized then started a new avenue for new market opportunities.
The problem is how do you get this done in a legal way.
You and I could trade a security and we don’t need to do anything. We don’t need any approval, right? You and I agree the price, and we somehow need to notify the transfer agent or the issuer that we’re swapping this security. And we can just do it.
But if you suddenly take all your securities and put it there and start trading against a lot of people, maybe you’re becoming a broker dealer or a marketplace for securities.
And therefore you are subject to certain regulations, et cetera.
Figuring out what other things you can do with
security tokens and what type of regulation they fall under.
Because sometimes the problem is that these things are new, so the existing regulations are not designed for something new because we don’t know exactly where it fits. That part is the one that we still need to work more on.
Taking the hard road tends to be the more fruitful avenue at times.
Transfer Agent -> Broker Dealer -> Alternative Trading System
Securitized ID
Social Finds
Chain Analysis
Rank AML on a daily basis
Automation of Compliance
What can be digitized?
Having everything digitized, composable, and on a common framework allows you to create new financial products like a STO ETF for example. And the smart contract technology allows you to programmatically rebalance or whatever your investment objectives are. Program that in.
And so it’s essentially almost like an automated ETF that doesn’t require as much active management. It may just require a particular goals for your risk and return profiles. And you can program that all in right at the beginning. So I think that’s a very interesting, novel idea. So that’s one concept.
Your spectrum of choices just explodes in terms of what you can participate in.