The main value proposition is faster settlement. The big institutions can measure their profits in terms of settlement time, going from 2 days to 1 day (previous infrastructure upgrades) to instantaneous (this) makes them more money.
I see how it can make sense on the settlement layer, but that's of absolutely no relevance to individual investors, which is who Robinhood are targeting. In the EU, as far as I remember most modern brokers let you buy shares with unsettled proceeds of others without restrictions; in the US, getting a margin account takes no effort at all and bypasses the freeriding rules too.
Unfortunately, Robinhood makes money by selling individual investor orderbook data to the big guys so they can front-run them
Yeah.. as long as a judge can say that a security belongs to party X and not to the owner of tokens... tokenized securities are useless, they could just be a database record.
“They could just be a database record” is the response for pretty much all legal crypto uses.
It's almost like it was never designed at all to solve any of the actual problems with the finance system and just create a new one next to it with a different set of assholes at the top of it.
“They could just be a database record” is the response for pretty much all legal crypto uses.
It's almost like it was never designed at all to solve any of the actual problems with the finance system and just create a new one next to it with a different set of assholes at the top of it.
Yeah.. as long as a judge can say that a security belongs to party X and not to the owner of tokens... tokenized securities are useless, they could just be a database record.
“They could just be a database record” is the response for pretty much all legal crypto uses.
Saving in bitcoin to escape inflation works fine for me and is perfectly legal.
Someone explain to me like I’m 5 how tokenization makes it possible to trade private companies. Wouldn’t that mean that the owners of those private companies are somehow issuing tokens related to their ownership?
Or is this yet another magical crypto thing where we collectively agree/imagine that tokens are somehow pegged to private companies, without any direct ownership to said companies?
Yeah.. as long as a judge can say that a security belongs to party X and not to the owner of tokens... tokenized securities are useless, they could just be a database record.
Normal stocks exist in a similar way for 99% of people. You don't own them directly you're the 'beneficial owner' and your ownership is just a database entry in your broker's database backed up contractually. It's the legal hack that lets you just press buy or sell and have it happen almost instantly instead of taking days to move around the paper stock certificates from one vault to another. Even if you go through t…
I can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't? The value is not in the technical implementation, the value is in the trust and legal framework around ownership and counterparty transactions.
(paper stock certificates are no longer a thing except in rare circumstances, digitization took place long ago ["dematerialization"] at the clearinghouse)
Normal stocks exist in a similar way for 99% of people. You don't own them directly you're the 'beneficial owner' and your ownership is just a database entry in your broker's database backed up contractually. It's the legal hack that lets you just press buy or sell and have it happen almost instantly instead of taking days to move around the paper stock certificates from one vault to another. Even if you go through t…
I can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't? The value is not in the technical implementation, the value is in the trust and legal framework around ownership and counterparty transactions. (paper stock certificates are no longer a thing except in rare circumstances, digitization took place long ago ["dematerialization"] at the…
> I can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't?
I can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't? The value is not in the technical implementation, the value is in the trust and legal framework around ownership and counterparty transactions. (paper stock certificates are no longer a thing except in rare circumstances, digitization took place long ago ["dematerialization"] at the…
> I can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't? You can go to FINRA and the SEC.
Ahh, I was unaware FINRA and the SEC had the ability to reverse and override digital asset transactions on public cryptoasset networks. My apologies.
Normal stocks exist in a similar way for 99% of people. You don't own them directly you're the 'beneficial owner' and your ownership is just a database entry in your broker's database backed up contractually. It's the legal hack that lets you just press buy or sell and have it happen almost instantly instead of taking days to move around the paper stock certificates from one vault to another. Even if you go through t…
I can go to FINRA and the SEC if someone does not deliver or properly custodian my security. Who do I go to when the blockchain doesn't? The value is not in the technical implementation, the value is in the trust and legal framework around ownership and counterparty transactions. (paper stock certificates are no longer a thing except in rare circumstances, digitization took place long ago ["dematerialization"] at the…
These could be backed by the same SEC and FINRA requirements kind of have to see how the regulation plays out. I'm not super optimistic about it given their current attitudes towards crypto but this does more directly mix with the normal stock market so who knows where the rules will come down on this, they can regulate anyone claiming to offer tokenized securities to hold them purely 1-1 on the stock transfer agent of the companies for example, you don't have to regulate the 'blockchain' as an amorphous concept there will individuals/companies offering these tokens after all.