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Many crypto enthusiasts imagine a world where everyone holds securities DRS (direct registration of securities) which have been issued/delivered in the form of tokens on a blockchain and trade them on exchanges. That's not going to happen.
Make no mistake, I'm a huge fan of tokenizing securities. I'll explain how, when and...most important...why.
Last week I spoke with the CEO of a large REIT. He'd spent over a million dollars on tokenization initiatives for his securities and, close to going live, he spoke with some of his investors (funds, insurance companies, cities and other institutional investors) and was stunned to learn they absolutely didn't care. So he shelved the project and continued issuing securities just as he always had. He asked me "why would anyone do this?"
Good question. Lets deconstruct the answer...
The problem that almost all real estate firms have, as well as private companies regardless of size, is that there is no secondary market for their securities. The cos...more
Posted at 3/1/2021 1:10:47 PM