Securitize says native tokenization is the only true on-chain securities model
The post Securitize says native tokenization is the only true on-chain securities model appeared on BitcoinEthereumNews.com. Securitize CEO Carlos Domingo has declared that native tokenization is the only authentic way to represent securities on a blockchain. Speaking to the media, Domingo said that anything less than native tokenization risks confusing investors and weakening the promise of blockchain technology. There’s no true on-chain model for securities today—most are confined to walled gardens, Domingo argued in a recent interview. In contrast, native tokenization builds, issues, and records securities directly on the blockchain, with no intermediaries or replicas of traditional assets involved. Exodus, a crypto software company, is one such example, with its stock trading on the Securitize platform as tokens, for one thing. Investors have a blockchain-based token that is legally the share itself. This would remove counterparty risks, operational friction, and fragmentation, common when a record of value is stored off-chain and on-chain do not tally, Domingo continued. He also cited BlackRock’s Institutional Digital Liquidity Fund (BUIDL), a $2.8 billion money market fund, as an example of how native tokenization can be done at scale. Rather than using a traditional fund with centralized databases and third-party custodians, Securitize acts as the fund’s on-chain transfer agent, keeping the share register for all shares on its cap table on Ethereum. Regulators caution against synthetic token offerings Amid the scramble in tokenization, US regulators grow increasingly weary of how securities are being redesigned on-chain, especially when the technology ostentatiously obscures legal responsibilities. This week, SEC Commissioner Hester Peirce released a statement reminding the industry and retail investors that tokenized assets are still subject to securities laws. She cautioned that blockchain’s technological properties do not alchemically alter the legal nature of an asset. “As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset,” she wrote. “Tokenized securities are still securities.” Her…
The post Securitize says native tokenization is the only true on-chain securities model appeared on BitcoinEthereumNews.com.
Securitize CEO Carlos Domingo has declared that native tokenization is the only authentic way to represent securities on a blockchain. Speaking to the media, Domingo said that anything less than native tokenization risks confusing investors and weakening the promise of blockchain technology. There’s no true on-chain model for securities today—most are confined to walled gardens, Domingo argued in a recent interview. In contrast, native tokenization builds, issues, and records securities directly on the blockchain, with no intermediaries or replicas of traditional assets involved. Exodus, a crypto software company, is one such example, with its stock trading on the Securitize platform as tokens, for one thing. Investors have a blockchain-based token that is legally the share itself. This would remove counterparty risks, operational friction, and fragmentation, common when a record of value is stored off-chain and on-chain do not tally, Domingo continued. He also cited BlackRock’s Institutional Digital Liquidity Fund (BUIDL), a $2.8 billion money market fund, as an example of how native tokenization can be done at scale. Rather than using a traditional fund with centralized databases and third-party custodians, Securitize acts as the fund’s on-chain transfer agent, keeping the share register for all shares on its cap table on Ethereum. Regulators caution against synthetic token offerings Amid the scramble in tokenization, US regulators grow increasingly weary of how securities are being redesigned on-chain, especially when the technology ostentatiously obscures legal responsibilities. This week, SEC Commissioner Hester Peirce released a statement reminding the industry and retail investors that tokenized assets are still subject to securities laws. She cautioned that blockchain’s technological properties do not alchemically alter the legal nature of an asset. “As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset,” she wrote. “Tokenized securities are still securities.” Her…
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