Hello
This month confirmed the continuing trend that many players are making big moves to ensure they don’t miss the opportunities blockchain and cryptocurrency are creating. Many businesses are beginning to accept transactions in crypto, including gambling establishments (see: https://kryptoszene.de/tron-casinos/ for more information). In addition, governments are accepting blockchain assets as legitimate property and not securities. Now may truly be an excellent time to expand horizons and make further investments or developments.
Distributed Ledger Technology (DLT) is becoming a legitimate infrastructure to issue and transfer securities around the world, and banks and asset managers don’t want to be left behind. They are now, one by one, launching important and disruptive projects. Of course, with turnkey white-label solutions they can move faster than the others. Debt projects are leading the shift, funds are always in the race, and private equity deals for mid-cap companies are becoming tangible.
But where do banks fit in the security token value chain? It may be difficult for them to enter a market they’ve previously scorned. For example, one of the reasons why cannabis crypto is currently trending is because banks have refused to deal with the industry in the past. Meanwhile, security tokens had presented themselves as a unique remedy to that situation. The banks will have to carefully consider how they approach tokenization, that is for certain.
Investment banks play a crucial role in this transition from manual and cumbersome systems to automated and rapid processing times, especially for private markets. From the on-boarding of investors to the distribution of tokenized securities, it‘s becoming more and more apparent to banks that DLT can streamline current processes and massively reduce operational costs by offering an end-to-end digital experience.
We expect the upcoming month to be full of exciting announcements.
I hope you will find this edition useful. If you have any questions then please do not hesitate to contact us.
Best wishes,
Luc Falempin
Tokeny CEO