Tokenized Securities: The Next Generation of Asset Ownership

Published on
November 13th, 2020
Duration
53 minutes


Tokenized Securities: The Next Generation of Asset Ownership

The Interview - Crypto ·
Featuring Carlos Domingo and Santiago Velez

Published on: November 13th, 2020 • Duration: 53 minutes

Carlos Domingo, CEO of Securitize Inc., joins Santiago Velez, co-founder & R&D division lead for Block Digital, to discuss security tokens, what can be tokenized, and the future of the crypto space. Domingo explains the importance of building out infrastructure for security tokens and how blockchain may be able to make securities much more liquid from launch. He believes that the more infrastructure built for liquidity, the more capital is available for the entire asset class. Domingo describes Security Token Offerings (STOs) and how he believes this is the direction most securities will go in the future. They cover the technologies used to build out an STO platform, like Securitize Inc., and the future of securities. Filmed on November 2, 2020. Key Learnings: Blockchain is a technology that removes the need for middle men or third parties to conduct transactions, and it appears that the traditional finance world can benefit from this in a variety of ways β€” one of the biggest examples is revolutionizing Securities offerings. This video helps viewers to understand the improvements blockchain can make on traditional finance and explains why it’s likely many companies will want to tokenize their assets at launch to reap the benefits blockchain provides.

Comments

Transcript

  • JM
    Jeanne M.
    2 December 2020 @ 01:29
    Great job Santiago, by brain hurts less when you recap! very valuable. Thank you
  • DB
    Dave B.
    21 November 2020 @ 16:35
    OK here’s a rhetorical question. Since we can tokenize everything, can we also do so for the grandfathered legacy 1934 Securities laws? Can we secure them at the bottom of the sea. 😏 Great talk. Very illuminating. Thank you both for this immensely awakening chat.
  • dd
    diego d.
    14 November 2020 @ 07:36
    Do they use Quant Network?
    • SV
      Santiago V. | Contributor
      20 November 2020 @ 21:14
      No. Securitize use the DS Protocol, which is a layer 2 on top of other blockchains, like Ethereum. That being said, nothing precludes securities being swapped on a large abstraction layer like Overledger using an interoperability standard that has the compliance layers and access to liquidity for settlements.
  • NC
    Nicolas C.
    14 November 2020 @ 18:01
    Thank you Santiago you're my favourite interviewer in the crypto section by far. Any thoughts on who is leading the race in the STO platform sector? INX and tZero come to my mind. Any other players I should look at?
    • SV
      Santiago V. | Contributor
      20 November 2020 @ 21:12
      It's a good question, I'm not sure how you would measure the lead? Number of projects? Trading volumes on the ATS? Ability to obtain runway vs. adoption by accredited investors? M&A? This is a great question but I don't think I'm qualified to provide an answer just yet. Let me research and think about some metrics to form a view.
  • DM
    Dan M.
    15 November 2020 @ 16:24
    I really want to get more into crypto beyond Bitcoin but I find so much of the content to be way beyond my understanding. Do you have any explainer videos? Are there any good resources to catch up with?
    • SV
      Santiago V. | Contributor
      20 November 2020 @ 21:11
      Please feel free to reach out to me to ask questions, whatever you need. santiago@blockdigitalcorp.io
  • AF
    Alan F.
    16 November 2020 @ 01:54
    This was helpful in understanding the potential of the STO markets as well as challenges. Carlos is impressive in showing flexibility towards solving problems. My question for Carlos is Ripple's Xpring fund was apparently involved in Securitize's Series A and I'd love to know how XRP fits into their business model. It's my understanding that Xpring is an investor and incubator in businesses who can directly benefit from including XRP in their strategy and flows. I understand Ripple's native smart contract platform, Codius, is still being worked on and not ready for enterprise use. So then how is XRP being utilized, if at all now or in the future? Thanks!
    • SV
      Santiago V. | Contributor
      20 November 2020 @ 21:10
      My guess is that possible synergies between Securitize and the XRPL will most likely be expressed via Flare, the upcoming smart contracts platform that incorporates the Ethereum Virtual Machine (Solidity compatibility) with Byzantine Fault Tolerant consensus methods (almost no fees to speak of to execute smart contract consensus. One of the largest supporters of Flare has been Mr. Domingo in regards to introductions and support for development. I also strongly believe the Japanese market to be the most likely to see these benefits structurally from combining XRP settlement with bank liquidity and securitization of properties. I'm speculating but my spider sense tells me the aforementioned is highly likely.
  • CS
    Carey S.
    19 November 2020 @ 17:06
    Check out Hedera Hashgraph.
  • VM
    Veliko M.
    16 November 2020 @ 03:09
    This was a great discussion with a solid hands-on builder perspective. I do appreciate the fact it is not coming from someone disconnected from the software-building or regulatory realities of the space.
  • DW
    Dean W.
    15 November 2020 @ 13:20
    Excellent, very insightful and realistic. I think Securitize has a great future.
  • AW
    Andrew W.
    15 November 2020 @ 01:59
    A dozen RV Crypto interviews later, I still see no logical argument for why security tokens should be decentralized or involve a decentralized blockchain. BTC and DeFi are totally different things that have nothing to do with each other. The former solves the money problem. The latter solves literally nothing.
  • RC
    Rafael C.
    14 November 2020 @ 15:46
    Very good interview Santiago. You went deep into the issues and helped unpack dense chunks of information.
  • JV
    Jerry V.
    14 November 2020 @ 12:09
    Very informative conversation - Pura Vida