Could security tokens be the next big thing in crypto?steemCreated with Sketch.

in #crypto5 years ago

Could we soon see Apple and Google shares on the blockchain?

Many in the industry are saying yes!

Analysts are increasingly saying that security tokens may be what ends up reinvigorating the space.

Security tokens would put securities like stocks and bonds on the blockchain.

The idea is to turn real world assets, like stocks (or anything really) into digital tokens.

How would this happen?

Likely through an STO (security token offering), though there are other ways as well.

ICOs raised a considerable amount of money in 2017, though that avenue has mostly dried up due to market saturation, regulatory concerns, as well as many fraudulent activities and outright scams.

One of the main differences with STOs is that these security tokens are actually asset-backed and fall within regulatory parameters.

Many people are envisioning a world where just about everything will eventually be tokenized and therefore tradable/transferable.

(Source: https://hackernoon.com/the-security-token-thesis-4c5904761063?gi=3ecb8cfba862)

Becoming a reality?

Security tokens have been talked about for some time now, but on Monday a firm took a major step in making this a reality...

Yesterday, DX.Exchange, an Estonia-based crypto firm, launched a trading platform that lets investors buy shares of Apple, Tesla, Facebook, and Netflix (among others) indirectly through security tokens.

Each token is backed by one share of the company's common stock.

Investors that may not be able to purchase Apple stock directly can now gain exposure indirectly through security tokens.

This is an important development for investors living outside the US.

There may be some regulatory concerns that haven't been answered just yet regarding DX.Exchnge, however, they claim that these tokens are simply derivatives of the Nasdaq listed equities and have gained the necessary regulatory approval.

Interesting to see how things continue to develop in this space.

Stay informed my friends.

Image Source:

https://coinsutra.com/security-tokens/

Follow me: @jrcornel

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This is a great news, specifically to international investors who want to invest in US stocks.

Yep exactly. It opens the doors to another world of investors.

you mean they want to own assets backed with dollars/dollar denominated assets?

I mean they want to invest in the US stock Exchange.

Tokenization of the world will come very soon!

Posted using Partiko iOS

I was hopeful that steem and SMTs were going to be some part of that. Though, now I am less optimistic than ever before.

Honestly, it is really not up to the protocol when it relates to existing assets. The important piece is the custodian who needs to hold the underlying asset on the blockchain. In theory, it should be easy to setup but regulation makes it more difficult.

Posted using Partiko iOS

i believe thats exactly what will happen
tokenization is the future how fast it will come is another story
cheers hope all is well jr have a great day

I think it is going to start happening this year and next personally. Too much money to be made by the powers that be.

and i totally agree with ya
im a stacker of silver land and cryptos
some gold and lots and lots of protections investment
holding my breath for no more delays on the baakt platform launching that should give us a healthy bounce within a month of that launchibg im hoping
cheers have a good evening

Security tokens WILL take over the stock markets.

Unfortunately, this will most likely happen AFTER
the stock market crashes AFTER
they find out there are 5 stocks outstanding for ever 1 existing.

The system is supposed to be designed in a way that for every "air share" that is created in order to facilitate orderly markets, it is eventually terminated. Though who knows if market makers and exchanges have actually been doing this.

If they actually believed in "air shares" being terminated, they would have tokenized the markets last year when Veritaseum approached them with their tokenizing block chain.

Or, they would have implemented such as they market went digital.
But, since they didn't. And since the water street floods, one can only think that they want the "air shares" to continue to exist.

NASDAQ is already using blockchain on certain private equities markets. I wouldn't be surprised if we start seeing publicly traded security tokens!

Posted using Partiko Android

I wouldn't either. Interesting to see what that does to the crypto markets we have currently. Does that pull capital away or further legitimize them?

It would very much be a great possibility. The more tokens the better! There is no need to subject ourselves to one currency... Everything is valuable in this world!

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my brain is not big enough to understand what is happening ... only thing I know is that all economics is only based on confidence, if people are confident (or powerful) the system works ... right now it seems like no one knows where the ground is to walk on

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