Security Tokens

Security Tokens @ F50 Synergy Blockchain Summit


Security token gives the owners of the
token a right to the underlying asset

and so you can think of it as a digital
form of the underlying asset and it’s

issued and traded on the blockchain and
that trading and issuance takes place

with smart contracts so that’s really
the idea of a security token it’s a bit

different than a utility token utility
token gives you an access to services
right access to a database or which is

the ledger right the blockchain ledger
the distributed ledger but a security

token is actually you know something
that is acid has monetary value so it’s

not trying to find value it already has
value so the types of security tokens

are there are equity like tokens so
these acts like a share so sharing a

company so you might think of like a
share of Apple stock and you have a

digital form of
and it can give you things like voting

rights or it gives you information of
its history who owned it before you

maybe you know the price history things
like this there are also a whole class

of new security tokens which are
asset-backed tokens and you can think of

these we’re going to be talking about
these on the panel things like property

or art these are a whole class I could
also be things like you know renewable

energy so there’s a lot of different
types of asset-backed tokens and it

actually opens up trillions and
trillions of dollars of new

opportunities which we’ll be talking
about so if you look as a security token

it doesn’t do it I see oh you do what’s
called an sto and that’s a security
token offering and it’s fully compliant

which means you have kyc AML it’s going
to be issued and traded on a compliance

exchange so as you know mostly ico
companies that when they issue their

tokens on an exchange they go on to an
exchange that is not compliant with any

government body and there’s not always a
these security tokens because they act

like a security which is already
compliant and so we’re talking about the

us-japan complying with FINRA or SEC or
both and your exchange as Gary mentioned

mentioned with me an ETS or an
alternative trading system and that also

would be compliant so usually you’re
going through like a red ve exemption

and then there was like a radio class
actually we’re going to be talking about

many of these things so let me just
quickly get into what are the advantages
of this token well you can actually

trade illiquid assets and some things
that typically you could trade like for

example your house before you sell it
and maybe you have no rent on it it

could be things like art that’s hanging
in a museum it could be a lot of

different types of property you might
remember the petrol which was issued by

the government of Venezuela these are
oil reserves obviously they’re giving

wood they didn’t do it in them as a
security token but you can tokenize

pretty much anything and it gives you
access to a global capital so again

think of the ico the markets you get
access to investors on a global basis

you can also reduce the limits you don’t
have to have a credit
investors necessarily so there’s less

fraud because they’re backed by you know
a an actual asset so key sectors for

adoption real estate like I mentioned
commodities VC funds PE funds they’re

very illiquid stocks responds things
like this companies in the ecosystem

some of them are here we have swarm fund
polymath securitize Farber it helped

companies to securitize and do this in a
compliant way and that’s what the key

exchanges templum t0 open finance
network or something you may have heard

of so he just wanted to give you that
quick primer on security tokens and just

differentiated from the nebulous concept
that everything has security security

tokens are anything and we’re going to

thank you

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