pull down to refresh
this tokenized assets exists and is hyped since 2015 if I remember correctly. I remember a company called tZer0 doing that back in the days. It didn't change anything and won't change anything because you will always need third parties for securities as they are regulated. So it's basically centralized actors trying to replace other centralized actors just by faking innovation.
If the lifecycle of an asset does not entirely depend on a the chain. The chain is useless.
It works with bitcoin because the chain is the law, but for a company share a house or anything else it's just 100% useless. Use a fricking database.
2015 doesn't mean much, tanker ships don't move on a dime, will probably be another decade before much of anything is cut over.
because you will always need third parties for securities
Yes, the equity is still centralized issue, so the asset itself doesn't really need a blockchain.
However, not every brokerage is going to integrate every public companies database, so right now they all use DTCC as an "L1" of sorts, the Exchanges are an L2, then each brokerage is a basically a db/mint on top of that.
The objective appears to be to dis-intermediate DTCC and federate the broker layer.
our definition of blockchain and theirs is going to be wildly different
This is my main point, it's not really a blockchain as far as we're concerned, but there's efficiency/cost improvements to be had as far as they're concerned.
"Faking innovation" is a custom Bitcoiners hold dear as well, as illustrated with new op_codes, fake L2's, ecash, etc.
Just as larp devs explain things to Bitcoiners, the leviathan FinTechs communicates things to their IR departments.
Blockchain is more digestible language for them than multi-master federated-database.
It's conceivable, but after they put all the controls on it they'd probably negate most of the potential. Don't see these tigers changing their stripes much.
There is an unneccessary centralization vector wrt equities:
https://m.stacker.news/162466
Tokenized equities could dis-intermediate this company and potentially unify all brokerages into one liquid market, that could be good for execution prices at some level.
Instead of DTCC, the brokerages like Fidelity, Shwabb etc and the PubCos that actually issue stock, could be the peers in a p2p replacement.
The cost savings could be massive in nominal terms, but I think also irrelevant in the grand scheme of how much notional value sloshes around.
Tokenized bonds and paying the yielding tokens instead of coupons on them are probably more easily implemented in such a system.
So there's something there, but our definition of blockchain and theirs is going to be wildly different. What they end up with will paradoxically more resemble centralization and consolidation via federation rather than decentralization.
I got a lottery ticket long on $HOOD as they seem to be the tip of the spear on implementing this shit.
Jordi Visser has some reasonable takes on this, it accelerates price discovery, which long story short is good for Bitcoin.