One of the biggest problems in private markets is fragmentation.
An issuer, investor, administrator, adviser, bank, custodian and trading venue can all rely on different records and processes for the same security.
The more handoffs there are between the actors of the market, the more reconciliations are created and thus room for friction.
Tokenization can solve a number of problems for issuer and investor alike, when done for the complete ownership lifecycle.
Investor eligibility to participate in a transaction can be verified prior to completing the transaction. Subsequent updates to the ownership interest in a security can then be recorded on the controlled digital record of ownership of such security. The transfer and settlement rules can then be applied to the same workflow as the updates to the ownership record.
But regulated finance also needs privacy.
@Dusk combines confidential transactions with selective disclosure. All authorized parties can verify relevant information while the complete investor record remains (can remain) hidden from the public eye.
That balance is important for regulated assets.
The goal is not to make every financial transaction transparent to everyone.
The goal of all financial activity is to make the ownership, the compliance and the settlement of any financial asset more efficient while keeping the sensitive information private.
That is why I think Dusk’s approach to regulated on-chain finance is interesting.
#dusk $DUSK
An issuer, investor, administrator, adviser, bank, custodian and trading venue can all rely on different records and processes for the same security.
The more handoffs there are between the actors of the market, the more reconciliations are created and thus room for friction.
Tokenization can solve a number of problems for issuer and investor alike, when done for the complete ownership lifecycle.
Investor eligibility to participate in a transaction can be verified prior to completing the transaction. Subsequent updates to the ownership interest in a security can then be recorded on the controlled digital record of ownership of such security. The transfer and settlement rules can then be applied to the same workflow as the updates to the ownership record.
But regulated finance also needs privacy.
@Dusk combines confidential transactions with selective disclosure. All authorized parties can verify relevant information while the complete investor record remains (can remain) hidden from the public eye.
That balance is important for regulated assets.
The goal is not to make every financial transaction transparent to everyone.
The goal of all financial activity is to make the ownership, the compliance and the settlement of any financial asset more efficient while keeping the sensitive information private.
That is why I think Dusk’s approach to regulated on-chain finance is interesting.
#dusk $DUSK