Earlier this month, the Security Token Academy held their Security Token Industry Launch Event. Bringing together industry experts to celebrate and discuss this emerging sector of the blockchain space, the event was intended to be a watershed moment for the tokenized security space.
From STOs to discussions on the future of tokenized securities, the Security Token Industry Launch event was an introduction to tokenized securities for the world to see.
If you haven’t heard about it, it worth checking out the long list of speakers at the event which included the likes of David Weild, the former Vice Chairman of NASDAQ, and Fabian Vogelstellar, the creator of the ERC-20 token standard.
So, let’s delve into the top five takeaways from the event called “the launch of the token industry” by its many fans and participants.
#1 – On-chain Compliance and Regulation
Right off the bat, many of the speakers spoke frankly about the future of the regulatory environment. One aspect many seemed to agree on is that on-chain compliance and regulation is the future, as mentioned by Howard Marks, CEO of StartEngine, and others.
Rather than having regulation be some overhead imposition, regulation and compliance can instead be cooked into smart contracts. This would in effect mean that compliance would be tokenized, represented on-chain, and integrated into the data stored on the blockchain. It’s an idea that is quickly gaining steam and will likely be integral to the success of the tokenized securities space.
#2 – Existing Industries Will Change
The tokenized security industry will undoubtedly produce new businesses, but just as important is the transition of existing firms to tokenizing their assets and operations. For example, Jeremy Allaire, CEO, and founder of Circle spoke about Circle’s recent acquisition of Seedinvest:
“Seedinvest has built a very nice business helping hundreds of businesses to raise capital over the internet … We’re kind of a made for each other, security tokens and crowdfunding…”
Seedinvest is just one example of a platform that was will be migrating to a tokenized system.
#3 – The Security Token Industry Is Barely Known
Carlos Domingo, CEO, and co-founder of Securitize emphasized at the conference how early we are in this new industry. In regards to tokenized securities, “we went from 100% of people not knowing what it is to 99% of people not knowing what it is.”
#4 – Tokenization Allows for New Ways to Monetize
Markets that have historically not been as liquid, such as the real estate market, will benefit most from tokenization since assets will be able to be traded and moved almost instantly. Jason Myers, partner of Clifford Chance, spoke about how tokenization could bring in new ways to monetize and provide liquidity to real estate and other assets.
#5 – “Tokenized Securities Will Rock the Financial World”
Alex Molé, Investor Relations Manager at Neufund, put it simply:
“STOs will begin in Q4 of this year… this is a major, major revolution that will take years to play out.”
2019 is definitely shaping up to be the year that tokenized securities become a central part of the cryptocurrency space.
What are your thoughts on the Security Token Launch Event? Have a takeaway from the conference that wasn’t mentioned here? Leave a comment down below and let us know.
Image courtesy of CrowdFundInsider.com