NYSE Parent Takes Stake in Tokenised Securities Platform

Tokenize the World Episode 10 - Forkast's New Segment featuring our CEO Henry Chong. In this episode joined with Angie, here to discuss on NYSE Parent Takes Stake in Tokenized Securities Platform.

March 24, 2022
min read

Are digital securities coming of age? The announcement that the New York Stock Exchange's parent company, Intercontinental Exchange, taking a stake in the tokenized securities platform, tZERO, could certainly indicate that.

Are there enough players to support the development of the tokenized security market?

As interesting as crypto and NFTs are, there is still much to be done in terms of tokenizing real world assets (shares, bonds, funds, real estate…). And seeing a major player like the New York Stock Exchange and their parent company entering the market is really proof that this is imminently about to happen. So all of us, issuers and intermediaries, need to adapt and innovate or we're going to be left behind, because this is what customers want. Issuers want to be able to tokenize their securities, and investors are keen to be able to actually invest in securities, tokens that represent real world assets.

Are legacy intermediaries like investment banks ready for the adoption of digital securities?

My belief has always been that the jobs to be done in the financial industry are not about to change. We're still going to need exchanges, custodians, investment banks and brokers. It's just that all of them better be able to new technology. And I think there'll be a lot less intermediaries, that we can start to combine all of these functions using the power of blockchain technology. So financial institutions aren't going away, but if you are a legacy financial institution that can't quite adopt a new technology, I really do think you'll be less behind, especially because there are plenty of firms today who are scaling at light speed.

‘’Buying shares as simple as online shopping’’, what does this mean for the future of capital markets?

I'm convinced this isn't just a vision, that it's an inevitability, because the reality is that we're used to a certain customer workflow with everything we do. Whether it's buying things online through e-commerce, buying or interacting with any company or firm today, we expect to be able to do it digitally online and directly with the company. We're used to being able to view information about a company's product. Maybe we go on social media, see some reviews about it. And then if we want to actually transact, we want to be able to do that directly and online.

This works for literally every industry in the world, and I think capital markets will be no exception. Capital markets need to start focusing on the customer needs and delivering their customers what they really want. Investors want access to the most exciting investments. Companies not only want to be able to fundraise, but they want investors who are actually aligned with their company. They want to be able to turn their stakeholders into shareholders, and the platforms who can help people do that I think will win in this new market.

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