How Blockchain Technology Will Improve Securities Markets



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Blockchain and cryptocurrency markets caught the eye in 2017 and 2018, with the Bitcoin price falling about 75% from its peak. Secure Tokens are an area of ​​space that is gaining popularity despite the broader negativity.

In this case, the term "securitized" refers to the transformation of blockchain tokens into lawful securities, rather than, as some of us with financial experience suggest, a combination of badets ( or tokens) intended to be sold as securities.

The value of all publicly traded shares is in the range of $300 trillion. This measure does not include privately traded shares or other securities, such as bonds (whose value exceeds stocks) and derivatives. Unlike the nomenclature, tokenizing Securities' business is potentially a large enterprise.

Yet, one would wonder why anyone would want his titles to be symbolized. This logic seems to contradict many principles of the cryptographic community, according to which libertarian ideas about the elimination of central banks and the reduction of the role of the government in the financial markets are omnipresent. The logic for symbolizing titles is to make them more self-regulating.

Blockchain technology enables smart deals that can prevent ordinary investors from acquiring securitized tokens for which they are not qualified. They can integrate the respect of complex rules and international knowledge of the customer (KYC) and the fight against money laundering (AML).

For example, the technology that sometimes seemed to confuse securities regulators could now be used, with their help, to help protect investors by enforcing securities laws.

Dan DoneyCredit: Securrency

Dan Doney, 48, is the founder, CEO and CTO of Securrency, a start-up of 100 people that has already raised more than $ 9 million and focuses on securitized tokens. He joined me to discuss his company's work in space. Watch it in the video player at the top of this article.

Doney is pbadionate about seeing his technology improve the world. "Securrency's mission is to deploy a unified global financial services infrastructure that keeps capital formation out of the margins of the global economy, reduces the cost of participating in capital markets and improves global liquidity."

Security chips have the potential to solve two problems in the securities markets, says Doney.

"First, we are significantly reducing capital market access costs through user-friendly and efficient automated investment banking services," he said. Let's be clear, Securrency is not an investment bank and does not expect to become one. Rather, it is a technology platform whose clients are investment banks.

"Second, we are significantly boosting and improving global liquidity by supporting the financial services infrastructure of the future, serving as a global unifying protocol, focused on compliance, security and universal interoperability."

One of the key principles of technology is that badets that were traditionally illiquid could become marketable because they identify the problem of ownership even of fractional interests and prevent anyone who should not own the token of security.

Matthew Sullivan, founder and CEO of QuantumRE Network, uses this technology in his offering. He recognized early on that he would need the Securrency offer but at first had trouble finding anyone with the complete tools. His firm discovered Securrency in April 2018.

"Securrency is a key technology element in QuantmRE's offer to provide an off-line validation service that allows us to control the distribution of our badet-backed tokens," says Sullivan. "With Securrency technology, we are able to determine KYC and AML's status as a potential investor, issue token securities and track ownership change to a minuscule level."

He adds, "Securrency is one of the few technology providers to have deployed a work platform that provides the solutions these new markets need."

Crowdfunding in 2016 is an important new area of ​​securities law. Securrency is working on a partnership to allow affordable offers under these new rules that allow the sale of securities to ordinary investors.

Sullivan shared an observation with me. "If we wanted to rethink the way in which securities transactions are created and settled, we could consider the blockchain as the most likely core technology to be used."

It seems that Securrency just did it.

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Blockchain and cryptocurrency markets caught the eye in 2017 and 2018, with the Bitcoin price falling about 75% from its peak. Secure Tokens are an area of ​​space that is gaining popularity despite the broader negativity.

In this case, the term "securitized" refers to the transformation of blockchain tokens into lawful securities, rather than, as some of us with financial experience suggest, a combination of badets ( or tokens) intended to be sold as securities.

The value of all publicly traded shares is in the order of $ 300 trillion. This measure does not include privately traded shares or other securities, such as bonds (whose value exceeds stocks) and derivatives. Unlike the nomenclature, tokenizing Securities' business is potentially a large enterprise.

Yet, one would wonder why anyone would want his titles to be symbolized. This logic seems to contradict many principles of the cryptographic community, according to which libertarian ideas about the elimination of central banks and the reduction of the role of the government in the financial markets are omnipresent. The logic for symbolizing titles is to make them more self-regulating.

Blockchain technology enables smart deals that can prevent ordinary investors from acquiring securitized tokens for which they are not qualified. They can integrate the respect of complex rules and international knowledge of the customer (KYC) and the fight against money laundering (AML).

For example, technology that sometimes seems to confuse securities regulators can now be used, with their help, to protect investors by enforcing securities laws.

Dan DoneyCredit: Securrency

Dan Doney, 48, is the founder, CEO and CTO of Securrency, a 100-person start-up that has already raised more than $ 9 million and focuses on securitized tokens. He joined me to discuss his company's work in space. Watch it in the video player at the top of this article.

Doney is pbadionate about seeing his technology improve the world. "Securrency's mission is to deploy a unified global financial services infrastructure that keeps capital formation out of the confines of the global economy, reduces the cost of participating in capital markets and improves global liquidity."

Security chips have the potential to solve two problems in the securities markets, says Doney.

"First, we are significantly reducing capital market access costs through user-friendly and efficient automated investment banking services," he said. Let's be clear, Securrency is not an investment bank and does not expect to become one. Rather, it is a technology platform whose clients are investment banks.

"Second, we are significantly boosting and improving global liquidity by supporting the financial services infrastructure of the future, serving as a global unifying protocol, focused on compliance, security and universal interoperability."

One of the key principles of technology is that badets that were traditionally illiquid could become marketable because they identify the problem of ownership even of fractional interests and prevent anyone who should not own the token of security.

Matthew Sullivan, founder and CEO of QuantumRE Network, uses this technology in his offering. He recognized early on that he would need the Securrency offer but at first had trouble finding anyone with the complete tools. His firm discovered Securrency in April 2018.

"Securrency is a key technology element in QuantmRE's offer to provide an off-line validation service that allows us to control the distribution of our badet-backed tokens," says Sullivan. "With Securrency technology, we are able to determine KYC and AML's status as a potential investor, issue token securities and track ownership change to a minuscule level."

He adds, "Securrency is one of the few technology providers to have deployed a work platform that provides the solutions these new markets need."

Crowdfunding in 2016 is an important new area of ​​securities law. Securrency is working on a partnership to allow affordable offers under these new rules that allow the sale of securities to ordinary investors.

Sullivan shared an observation with me. "If we wanted to rethink the way in which securities transactions are created and settled, we could consider the blockchain as the most likely core technology to be used."

It seems that Securrency just did it.

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