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Could Ethereum be the best choice for Tokenize Securities?
The securities are investment instruments that can be bought and sold in the financial markets. Some of these examples are bonds, bonds, notes, options, actions and many others. However, they have some security issues, since they can be affected by fraud or physical theft.
Using blockchain technology, this problem could be solved and improved. The titles may be notarized, something similar to that which Austria has issued bonds on the Ethereum network. Tokens on the ETH network can be created using smart contracts that have a name and value on the Ethereum network.
This is why this blockchain platform was so famous for the first coin offerings (ICO) that they were able to create tokens and sell them later on the market. With this tendency tokenizing donkeys, the securities would be safer and easily accessible to other individuals and investors who are now unable to purchase these assets.
Around the world, there are some examples of tokenization and how they can improve different aspects of the financial world. In the European Union (EU), the DESICO company is the first regulated blockchain enterprise in the continent that offers end-to-end encryption services. This allows companies and stakeholders to issue and trade in tokens. This company is able to increase security for investors and companies, while allowing securities to be more accessible to other people.
In this regard, the co-founder and CEO of Desico, Laimonas Noreika, explained that the tokenization and blockchain technology will bring more transparency.
On the question, he commented:
"Tokenization, along with blockchain technology, will bring partial ownership, yes, it will bring more transparency, but it will not change existing securities laws, but in reality, I believe that tokens need much more securitization than the securities require tokens, at least at the current stage of the market. "
However, he explained that the impact would not be as fast as many individuals and experts believe. The changes will take some time to be applied and the stock and equity market will not change dramatically in the next few years. He also said that he thinks it will not be possible to replace the whole old system with the new one. Instead, both financial systems would work at the same time and coexist.
Ethereum, one of the most important blockchain networks on the market, could be one of the most benefited of this.
He said that Ethereum is the only network that lives and works without major disadvantages. However, Ethereum must be able to scale if it wants to offer better services and be a tool for the titles to be tokenised.
Clearly, tokenizing securities would allow the financial market to avoid various problems and improve the overall market. This would lead to the transparency and security that the traditional financial market needs, which can already be seen with the issuance of bonds in Austria.
Ethereum has been tested by various companies and governments and proves to have all the necessary requirements to increase the efficiency of the traditional financial market.
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