RATE Group | Why Ethereum (ETH) Is Well Placed to Tokenize Securities
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Why Ethereum (ETH) Is Well Placed to Tokenize Securities

29 Sep Why Ethereum (ETH) Is Well Placed to Tokenize Securities

Posted at 09:32h in Ethereum News by

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Securities can be defined as investment instruments bought and sold in financial markets, such as bonds, debentures, notes, options, shares (stocks), and warrants. This means that they some can fall victim to fraud through forgery as well as physical theft. With blockchain technology, such securities can be notarized – as was seen with the government of Austria issuing bonds on the Ethereum network – or they can be tokenized.

A token on the ETH network is created through smart contracts and can be assigned a name and value on the network. This ability of the Ethereum network has made it a favorite for the crowdfunding process through ICOs and will be key to tokenizing the tradition securities market. Tokenization will make securities more secure and easily accessible to regular guys like you and I.

Progress in the European Union

Tokenization of securities has already started in the EU thanks to DESICO which is the first EU regulated blockchain venture that offers an end-to-end…

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