What's up, folks! Here’s your News with the latest from the crypto world. Hold on tight because this is going to be spicy!
The top dog of Securitize, my buddy Carlos Domingo, dropped the bomb! 💣 He says that the most authentic and real way to put assets on the blockchain is with native tokenization. And what does that mean? Well, folks, it means that the assets are created, issued, and recorded directly on the blockchain! No beating around the bush or dealing with things that look similar but aren't.
Imagine you have a share of a company. With native tokenization, what you have in your digital wallet is the share itself, with all the rights that entails. It's that simple! This eliminates a bunch of intermediaries, those who charge you for everything and create more obstacles than a maze with no exit. 🙅♀️ And the best part, goodbye to counterparty risks! Those issues where what's off-chain doesn't match what's on-chain. Pure transparency and less headache! ✨
Carlos used Exodus as an example, a crypto software company whose shares are traded on the Securitize platform as tokens. One token, one share, buddy! He also mentioned the huge BlackRock fund, the Institutional Digital Liquidity Fund (BUIDL), which is a big deal ($2.8 billion, no small change!) and which Securitize manages as a transfer agent on Ethereum. This shows that this is serious business and can be done on a large scale! 🚀
But pay attention, because U.S. regulators are sharper than a detective. 🕵️♂️ SEC Commissioner Hester Peirce said that no matter how much blockchain technology you add, an asset is still an asset! 🗣️ It doesn't matter if you dress it up as a token or whatever, if it's an asset, securities laws apply! This is relevant because other platforms like Robinhood and Kraken have released some tokens that, according to Carlos and the regulators, aren’t 'native' and could cause problems.
Robinhood tokens, for example, don't give you direct ownership of stocks like Tesla's. They are more like an indirect exposure, like a little shadow of the real asset! 🙄 And Kraken with its xStocks, although they sound cool and can be traded on decentralized platforms, still have U.S. investors locked out! It's a legal mess, a web! 🕸️
We've already seen the chaos that unfolded before. Remember when Binance and the now-defunct FTX tried to launch their tokenized stock products? Well, that was a no-go! Regulators put the brakes on them, and I can't even begin to tell you how hard. 🛑 And Abra, another platform, had to pay millions in fines because it was selling assets without permission. A serious matter!
Tokenization is the future, that's as clear as day. But we need to learn from the mistakes of the past. No shortcuts or half-baked models! The good news is that regulators are starting to open their minds a little more. The SEC held a roundtable to listen to people from the financial and crypto world. That's good! It means they're trying to understand and not getting angrier than necessary.
So, folks, native tokenization seems to be the real way for digital money and the traditional world to shake hands without entanglements. Stay alert and keep a close eye on this move that promises a lot! What do you think? Let me know! 👇$ETH $SOL $DYDX
