Cryptocurrency exchanges begin offering tokenized securities
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Re: Cryptocurrency exchanges begin offering tokenized securities
#2‘Advocates say tokenization is the next leap forward in crypto and can help break down walls that have advantaged the wealthy and make trading cheaper, more transparent and more accessible for everyday investors. But critics say tokenization threatens to undermine a century’s worth of securities law and investor protections that have made the U.S. financial system the envy of the world’.
The problem with securities laws is that they are complex, and even defining what is a security is a hotly debated question, esp in crypto. I believe back in 2021, Binance had to pull back their offerings tokenized securities bc of german regulators, so its a very opaque environment.
Re: Cryptocurrency exchanges begin offering tokenized securities
#3When this whole thing crashes to the ground it will the digital equivalent of tulip bulbs of Netherlands.
Re: Cryptocurrency exchanges begin offering tokenized securities
#4When this whole thing crashes to the ground it will the digital equivalent of tulip bulbs of Netherlands.
How so? Tokenization is securitized, in this case with equities that have a huge and liquid market (the stock market).
Re: Cryptocurrency exchanges begin offering tokenized securities
#5When this whole thing crashes to the ground it will the digital equivalent of tulip bulbs of Netherlands.
What?
Why does we risk a crash more by using crypto exchanges over regular exchanges?
This is an incredibly lazy comment and reads like an involuntary spasm.
Re: Cryptocurrency exchanges begin offering tokenized securities
#6Approximately everybody in the US is able to get a brokerage account for trading public shares (with actual SIPC insurance, very limited liability for fraud etc). At the same time, the publicly investable stock market constitutes less and less to the total universe of US companies.
Unless tokenized securities will somehow make private investments accessible to non-accredited investors, this initiative seems to be entirely missing the elephant in the room, at least in the US.
Re: Cryptocurrency exchanges begin offering tokenized securities
#7When this whole thing crashes to the ground it will the digital equivalent of tulip bulbs of Netherlands.
Tulip mania lasted 3 years: 1634-1637 in part of a single country.
Surely we should keep comparing it to a decades old globalized financial system with formalized state support from many nations and a market cap measurable in the trillions.
Re: Cryptocurrency exchanges begin offering tokenized securities
#8Approximately everybody in the US is able to get a brokerage account for trading public shares (with actual SIPC insurance, very limited liability for fraud etc). At the same time, the publicly investable stock market constitutes less and less to the total universe of US companies. Unless tokenized securities will somehow make private investments accessible to non-accredited investors, this initiative seems to be ent…
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.
Re: Cryptocurrency exchanges begin offering tokenized securities
#9So NFTs for stocks?
Re: Cryptocurrency exchanges begin offering tokenized securities
#10When this whole thing crashes to the ground it will the digital equivalent of tulip bulbs of Netherlands.
I thought the same, but... I don't think it will ever go down. Stock prices are already divested from the company fundamentals, but they can only get so high, so the next _logical_ step would be to create something entirely divested from the stock prices itself. Enter tokenized stock.