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| Securitization thru Tokenization: Trading Digital Assets |
Securitization thru Tokenization
Trading Digital Assets
Blockchain is a new technology by which financial instruments can be securitized. Blockchain can allow assets such as equities, commodities (e.g. gold), bonds, mortgages other financial instruments and real estate to be securitized via tokenization.
Crypto-tokens, backed by such assets, can be created and traded on exchanges. Tokens could be backed by asset classes such as equities, fixed income, currencies, commodities, real estate, and derivatives.
Cryptocurrencies are already traded on crypto-exchanges. Other types of digital assets are also appearing in the market. ICO (Initial Coin Offerings) have proven popular as a means of crowdfunding for startups. Similar offerings backed by assets can be issued, listed and traded
Digital asset exchanges where financial instruments can be tokenized and then traded will become more common. Is blockchain going to disrupt the capital markets?
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