Alan Konevsky, CEO of tZERO, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the benefits for issuers and investors of tokenizing securities that can be accessed through global digital markets.
tZERO is an innovator in the tokenization of US securities markets. Over the last eight years, tZERO has built a strong framework for compliance and regulation of tokenized securities. tZERO can assist issuers in raising new capital in the tokenized market and offer investors a trading platform for tokenized securities on a transparent, regulated marketplace. tZERO is one of only two special-purpose broker-dealers in the US that offers a wallet to custody tokenized securities directly on a blockchain. tZERO’s solution is agnostic to technology, platform, and assets.
Konevsky notes that tokenization provides a better way to track, exchange, and settle transactions of items of value. There are four benefits to tokenizing securities. First, tokenized securities and fund interests offer interoperability with other asset classes, including stablecoins, cryptocurrencies, and prediction and derivative markets. Liquidity and interoperability result when multiple asset classes share common technology through blockchain-based databases. This makes it easy for digital natives to trade the tokenized securities and use the assets for collateral in on-chain applications.
Second, tokenized securities can be traded across borders, enabling more seamless global capital flows and fundraising from global investors. Third, smart contract automation makes markets more efficient, faster, cheaper, and more transparent. Fourth, programmable assets can create deeper relationships between investors and issuers.
Liquidity for tokenized assets can be accessed through tZERO’s alternative trading system (ATS). Investors need to be approved by issuers before buying tokenized assets. RIAs and their clients are an important part of the demand and liquidity for tokenized assets.
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