Blockchain and distributed ledger technology are revolutionizing the financial industry in many ways. Forbes recently published an article – “Security Tokens Provide New Efficiency To Previously Paper-Based Transactions.” Due to dispersed liquidity and the lack of a proper regulatory framework and infrastructure, the adoption of security tokens has remained slow. However, the “Shift in the industry began with the founding of DEFYCA, a digital securities firm in Luxembourg that offers a fully digital investment experience for investors, issuers, and funds, including fully digital securities and cash flows,” as reported by the Forbes.
The article published on Jan 13, 2023, stated the significance of smart contact technology and how it is changing the private credit & private securities business. This technology enables investors to invest and trade across multiple chains. The introduction of digital security tokens has revolutionized the way traditional securities work. They have multiple benefits, including significantly lower cost, better ownership visibility, and frictionless distribution. Moreover, improved safety is another advantage, lessening fraud and error risk.
According to the co-Founder of DEFYCA, Pat Hourigan statement as mentioned in the article, “One of the main advantages of tokenized platforms is the increased efficiency and cost savings; settlement can be as low as a few cents, regardless of the value of the security being traded. These types of benefits have caught the attention of major players in the market, such as BlackRock, who have expressed interest in tokenization.”
Please click on the link below to read the full article published by Forbes.
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