The Tokenization of Digital Securities a discussion. \ stacker news ~Stacker

Posting this on a late Saturday night to hide from the maxis who might call me a shit coiner for posting this but I think this deserves a closer look. Especially since this is stacker stocks territory where we talk all things investing and equity.

What is this about

tZERO Group Inc., a leader in technology solutions for capital markets, proudly announces the respective Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) approval of tZERO Digital Asset Securities as a new Special Purpose Broker-Dealer for digital asset securities custody.

This is only one of two licenses for a regulated broker-dealer digital asset security custodian that have been approved in the United States since the rules were introduced by the SEC in 2020, serving as a major milestone in tZERO's continued journey toward the development and adoption of securities that will unleash the full potential of blockchain technology for a range of assets, including private securities, securitized real estate, art, sports and other Real World Assets and funds.

Here the government selecting a company that uses shitcoin blockchains to secure the tokenization of different assets. To no one’s surprise the government is picking winners and losers here by only offering this special license to two firms instead of letting the free market decide.

But that’s not the topic of discussion. When I read this I was thinking man it would be great if someone brought this functionality to bitcoin.

I know liquid and bitfinex are working on STOKR and blockstream’s highly successful BNM bitcoin mining note (BMN) that gives owners exposure to hash rate and bitcoin sats flow with one large capital investment. But other than that innovation in this space for bitcoin is all about dead.

For the record I have zero desire to do business with tzero or purchase/invest in any products they bring to market. It is such a shame that shitcoins have become such a distraction and a time sink that my idea of a ln market type stock market is probably 15 to 20 years away if ever.

But I posted this to stacker news because I believe the tokenization of shares in a company can make a ton of sense. For both investors and startups/companies.

I can dream of a world where a stock exchange is built on technology like ln markets where I can trade 24/7 and get instant settlement on my trades on companies that are traded publicly. And actually hold the bearer asset. It would be a massive shift for equity markets and the liquidity can be as deep as a few sats that settle in real time.

I wrap this up to say I don’t believe in tokenizing lakes, streams, houses, or any of that garbage (other wise called RWAs) but I do think equities it could work. Instead of getting my Verizon shares on fidelity I get them via Taproot Assets on LND powered by sats.

One can only dream!

For reference check out https://lnmarkets.com/en/

US folks might need to use a VPN but it’s amazing you can degen with any amount of sats. You can do 100x leverage with 10 sats if you wish!

204 sats \ 2 replies \ @grayruby 22 Sep

You’re a shitcoiner.

Haha. Just kidding.

Regulators were always going to select a centralized entity that they can rule over for tokenization/digitization of securities. The ethereum people must be in shambles.

40 sats \ 1 reply \ @BlokchainB OP 22 Sep

😂😂. Yeah but I am sure tZero will use ETH to bring their products to market. But you are correct governments wants that control

59 sats \ 0 replies \ @grayruby 22 Sep

Most likely outcome is DTCC does it.

68 sats \ 2 replies \ @TheBTCManual 22 Sep

What i the benefit of tokenising assets? If it's a cost saving excercise versus managing multiple databases then I guess that's one improvement, if they pass on that savings to customers to trade at lower fees and trade 24/7

But for the end user, what difference does it make having a token?

It's still just a front end for them that manages the custody, its not as if anyone can just buy those equity-tokens, you'd need whitelists, KYC, regulatory compliance, tax compliance so even if you have the "bearer asset" in the token, you can only engage with certain entities to use it, so why have a token in the first place?

0 sats \ 1 reply \ @BlokchainB OP 22 Sep

I think you can do innovative things like on-demand dividend payments. And other things that can give perks to shareholders of your company. Say you own 35 shares of Starbucks and get 5% off your coffee for being a provable shareholder. Then if those shares move you can put in time locks to show how long you owned the shares to stop people from gaming the system.

Everything you talk about is true about equities from a privacy standpoint. The KYC, taxes, if you are a privacy bro and don’t want to take part in owning a company or providing an investment then these products aren’t for you.

I am not an anti state.

68 sats \ 0 replies \ @TheBTCManual 22 Sep

Sure I can understand having lets say voting shares versus non-voting, class B provablity and having incentive structures like better premiums on stock buy backs or higher dividents for long-time holders, but again the token doesn't exactly make it so, its the database that talks to the blockchain that makes it so, the oracle, which can be compromised, sure you can add redundancies but now we add more complexity and cost

I'm not saying people won't do this, and that there won't be a RWA token market, I'm just looking at the practical use for the tech, the upside, improvement over the current system

0 sats \ 0 replies \ @Satosora 22 Sep

Interesting. Probably will flop like all the other shitcoins. Anyone remember peercoin?