We believe in the potential of blockchain technology to radically alter the shape of modern finance, business, and government. We believe in interoperability. In the current model, securities trade and settle across a multitude of disconnected broker, clearinghouse, and custodian databases. We envision a world where security tokens can trade freely across many markets in varying jurisdictions, opening investment opportunities for unexplored investor classes and geographical regions that were previously hindered by bureaucracy, lack of understanding how to participate, cultural or language barriers.
What is Blockchain?
Blockchain is a new approach to data sharing and management where all participants use a shared database secured by cryptography. Unlike a centralized ledger employed by central authorities such as banks and institutions, the database placed on the blockchain is distributed on a network of computers all around the world. This information cannot be erased or tampered with, and is transparent and accessible to all participants in real-time.
With the removal of the middleman, blockchain eliminates excessive fees and time delays associated with traditional long-distance transactions. Blockchain has the power to finally bring traditional finance into the digital age, and disrupt industries like real estate, energy, supply chain management, entertainment and energy.
Digital Security Tokens
Tokenization means representing ownership stakes of any asset with a token. It imbues tokens with a legal status and introduces trustless and secure record keeping and brings full or fractional ownership of real-world assets (company stock, real-estate, funds, luxury investments...) and all accompanying rights onto the blockchain. It opens a world of trading automatization, real-time cross-border trade settlements, immediate deal execution, and access to new markets.
Secured Financial Transaction (SFT) Protocol
The SFT Protocol expands upon the ERC-20 standard to allow for the issuance, governance, and trading of tokenized securities on the Ethereum blockchain. The protocol is open-source and non-rent seeking, aiming to foster a diverse ecosystem for market participants to interact. It is modular, robust, and can be configured to represent both equity and debt based securities throughout their entire life cycle from issuance to redemption.
Through automated on-chain compliance the protocol seeks to reduce costs for securities issuers, allow for rapid settlement of trades, and simplify reporting requirements and regulatory supervision. By introducing a common standard for the claim to ownership and transfer of a diverse range of assets we can reduce market segmentation and open previously illiquid markets to a global audience of investors.
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