A financial system of tokenized assets

There are a few ambitious predictions out there relating to the widespread adoption of tokens and securities in the economy.

According to the former Chairman of Nasdaq, Robert Greifeld, pointed out in November 2017 that all stocks and bonds on Wall Street can be tokenized.

A similar prediction was also made by Overstocks CEO Patrick Byrne that stated there is a 100 percent chance that stocks and bonds will be tokenized within five years.

Nasdaq and Overstock have been pushing forward to build a market infrastructure that can deliver the benefits of tokenisation to the industry. These two companies have been developing security token platforms for a long time now. tZERO was launched last week and Overstock was the first to go live with the limited features it had to offer.

However, it aims to become the first U.S regulated exchange to issue and trade security tokens on the Blockchain.

The CEO described security tokens as an innovation of historic proportions build on the blockchain. Overstock was also one of the first to start accepting bitcoins and two years later decided to issue shares using the blockchain technology on a beta version on the tZERO platform.

The application of tokens aims to make securities become a bridge between crypto assets and the traditional financial system. Companies like Nasdaq and regional stock exchanges like those in Gibraltar and Switzerland have been merging with other related companies that already have the licenses needed for this kind of consuming process to take place.

Also. two more tokenised securities exchanges are looking to get launched, one in Estonia called the DX Exchange based on Nasdaq’s own blockchain project. This platform is set to allow for the trading of different crypto tokens which represent shares of tech firms to be listed on the Nasdaq index.

Estonia and Belarus are benefiting from progressive crypto legislation as there will also be a tokenized securities exchange allowing traders to purchase tokens and shares together with traditional assets.

The issuance of tokens

Many exchanges and protocols have shown great developments and progress in the sector as this enables the ease of use of tokens and real-world assets.

This is an extensive process which requires advisors, lawyers and regulators in order to work alongside this liberating technology.

IBM also recently announced that it will be supporting the progress of securities, which will be a startup that can help clients. The IBM Blockchain project will develop a way to make corporate debts more efficient, a vision that also falls under the partnership with tZERO.

A competing platform for the tokenisation of assets called Tokeny has also revealed it will be starting a partnership with a deal marketing platform, that will help bring in security token investors from traditional financial backgrounds.

Another growing company that goes by the name Tokensoft launched its first cold-storage custody service last week, designed specifically for security tokens.

This wallet is now known as Knox and will allow the enterprises to store security tokens and cryptocurrencies in a multi-signature and self custodial system.

What do you think of these developments between NASDAQ and tZERO? Please feel free to leave a comment down below.