Bitcoin Forum

opinions on this narrative please

I think tokenized securities will be the next big thing bringing large amounts of capital and adoption into the crypto industry. I think it makes sense as the securities transactions can be finalized immediately from wallet to wallet if you prefer self-custody, or through an exchange like normal. This comes with all the upsides of trading securities on an exchange however adds on-top of it with the ability to maintain/receive custody of your securities very very quickly. For firms doing their securities offerings through a tokenized form it would allow them access to another huge and growing market of potential investors.

I also think this will be the first time many older/tradfi participants will be exposed to cryptocurrency as the benefits are clear and tangible - Less risk for the holder upon a run on the bank, far greater efficiency with instant transfer with finality, this would improve the efficiency and lower the risk of any firm involved with trading securities.

The problems with tokenized securities are the AML problems, keeping an identity and record of everyone who holds the security to ensure current laws are met, and obviously the current regulatory environment for cryptocurrency as a whole. There's also the argument against adoption, whether trading and issuing securities as tokens is worth the seemingly daunting transition, however I believe firms who choose not to adopt will be at a disadvantage if they refuse. In my eyes regulation is the only thing holding this industry back.

I'd love your opinions on this narrative, and any other altcoins/firms other than below looking to push this forward in a big way. I know Goldman have noted they are looking into this, other than that my research hasn't gotten me further.

Currently my main play to profit off this narrative is LCX. LCX is a crypto exchange based in Liechtenstein currently chasing the dream of becoming a tokenized securities offering firm. They seem to have the partners (QNT being a big one, HBAR, World Economic Forum etc.) and a seemingly competent team. The issue again is regulation, however they seem to be dominating this space in Europe with specific mentions in the MiCA bill and others. They have created the Liechtenstein Protocol which addresses the regulatory requirements for traditional securities to date, and this is being implemented as a token standard on ETH, HBAR, Polkadot, and a few others (possibly AVAX coming soon). All of its development is outsourced to India which puts them with a shitty exchange experience and very little volume to date, however I cant seem to find another exchange as far ahead in terms of regulations and partners.

bumping because i seriously cant believe nobody is interested/paying attention to this narrative... is this just a shit post or does nobody understand what im getting at??

Tokenization itself isn't really anything new or solve any problems with securities. You might want to check Dusk Network and their plans about security token exchange and confidental smart contracts. Cutting edge team and tech that you don't want to overlook.

I've looked into dusk however I dont agree with the idea that tokenization doesnt solve anything, it immediately adds an immense amount of value in comparison to a regular security. Dusk is also pretty far behind competitors in the space in relation to tokenized securities exchanges, and I believe the major increase in value will be directed towards firms which are regulated to do tokenized securities offerings rather than providing an exchange to trade them. Current exchanges would be able to adapt to this relatively easily once regulations are clear, however being able to initially offer these securities will be a completely different ball park. THAT is where the value will enter the market.

Ok, i on the other hand think that manual issuing and trading with synthetics isn't anything new or revolutionary and the fact so many had to stop it. When on the other hand Dusk is planning it for actual stocks and securities with privacy on layer 1. But you do you. Good luck.