THETRADETECH DAILY THE OFFICIAL NEWSPAPER OF TRADETECH 2022
How can DLT , blockchain and digital assets innovate current technology and trading infrastructure ? A major opportunity for blockchain and digital assets is the tokenisation of assets with tremendous implications for trading revenues and opportunities . A major financial disruption took place in April 2012 through the signing of the JOBS ACT . This new legislation enables companies to raise money directly from main street investors cost effectively , meaning that companies no longer need to look at banks , venture capitalists ( VCs ) and accredited investor communities for capital . They can go directly to the crowd .
There is massive opportunity for equity crowdfunding to move “ on-chain ”. Indeed , by using blockchain and digital assets and one of the JOBS Act exemptions , shares can be issued by companies , and by using the blockchain those shares can be tokenised . The thousands of cryptocurrencies out there have proven how valuable liquidity is , and that investors are willing to buy a digital asset that they can trade at will . If companies tokenise their securities , investors will be able to trade those tokens immediately or after a one-year lock , depending on the exemption used . Even one year is far better than the five to seven years average for private equity investments .
With the JOBS Act and cryptocurrencies , a new class of shares can be traded costeffectively through small broker-dealers using an alternative trading systems ( ATS ) and registered exchanges . This new market bypasses the very expensive exchanges and investment banks that are constantly raising the entry bar for businesses . Thanks to company share tokenisation , the future for raising capital is brightening for small companies and startups .
In addition to the tokenisation of company shares , real goods and assets can stand behind the tokens . In the future , the widespread tokenisation of real assets could become a new trend – and one of the most promising markets for tokenisation is real estate .
Security tokens actually make it possible to tokenise an infinite number of alternative assets , which means that we could soon move from equity and bonds exchanges to asset exchanges . The opportunities for trading platforms are massive and will require the use of blockchain to upgrade trading infrastructure and systems .
Where does Syz Group fit into this evolving landscape ? Syz Group is going through the same steps as other institutional players who do see DeFi , the blockchain and digital assets as the future of finance and an area of opportunities . We are implementing best-of-breed digital infrastructure while abiding to Swiss regulatory requirements . This will allow us to provide our clients with access to the fastgrowing digital space .
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