On the third and ultimate day of the inaugural TokenizeThis Summit, the primary visitor was none apart from Carlos Domingo, CEO of Securitize. What adopted was a dialogue on not solely what the corporate has to supply however the place Domingo sees the digital securities sector going within the coming years, highlighting a couple of of the hurdles anticipated alongside the best way.
Securitize and the Function It Performs
Earlier than diving into a few of the insights shared throughout this dialogue, you will need to perceive what Securitize is and the position it performs within the digital securities sector.
Spearheaded by CEO Carlos Domingo, Securitize has managed to face out as a pioneering platform enabling the safe issuance and administration of digital securities on the blockchain, fostering compliant buying and selling throughout secondary markets. The agency goals to revolutionize non-public securities by facilitating its digitization and making certain streamlined, compliance-friendly operations.
Apparently, Securitize was born out of the 2017 ICO growth when Domingo acknowledged the power for them to boost capital effectively. Domingo acknowledged that together with taking inspiration from corporations like Polymath, he needed to recreate the ICO course of however in a correct and controlled method that might additionally entice conventional buyers.
So, whereas the digital securities sector started spinning its wheel by 2018 because of the proliferation of unlicensed corporations and a widespread underestimating of the complexities surrounding tokenization, there have been positives to come up from this era – like Securitize and Safety Token Market.
Because it stands, Domingo states that Securitize boasts the power to function as a switch agent, has tax reporting capabilities, as a dealer/seller, and whilst an ATS for secondary market buying and selling. These talents have already resulted in numerous promising partnerships with corporations like the next,
- Hamilton Lane
Domingo has attributed Securitize’s capacity to remain on the forefront of the sector to a couple easy approaches.
- Good execution
- Targeted strategy
- Monetary cognizance
It was famous that timing and the power to endure are the house’s greatest uncertainty. Domingo believes that not solely will digital securities grow to be commonplace however that by sticking to this strategy, Securitize has the power to remain so long as it takes. Within the meantime, it plans to proceed constructing out its ecosystem by a concentrate on investor participation and liquidity mechanisms resembling lending.
Little Love for DeFi
With Decentralized Finance (DeFi) protocols and platforms basically being the antithesis of a regulated, KYC/AML-compliant entity like Securitize, it was attention-grabbing to listen to Domingo’s ideas on the previous when the subject arose.
Unsurprisingly, the prevalence of hacks, anonymity, and lack of compliance with laws have every made it onerous for Domingo to see actual adoption of DeFi. Merely put, most individuals and corporations see too many dangers and want to function in a regulated setting.
Whereas the above could at present be true, Domingo didn’t go with out acknowledging his love for the nice expertise and ingenuity on supply inside DeFi. Extra particularly, it was famous that sure approaches in direction of lending and automatic market makers could possibly be adopted by Securitize in time.
A Look Ahead
So, what does the CEO of Securitize see when taking a broader have a look at the digital securities within the coming years?
First addressed was a sequence of wants that require fulfilling. Describing the sector as a two-sided market comprised of belongings and buyers, Domingo famous that the asset aspect of the equation has already been solved. The place the difficulty lay is in a scarcity of investor adoption – one thing that may be addressed by bringing extra utility to tokenized belongings and dealing collectively to make sure non-compliance amongst trade contributors doesn’t rear its head.
Moreover, Domingo echoed a comparable sentiment shared on day two of the TokenizeThis Summit by Graham Rodford, CEO of Archax, who acknowledged that bringing unhealthy belongings on chain doesn’t make them good. Quite, a concerted effort must be made to solely tokenized belongings which are already good, and strong.
It is not all uphill from right here, although. Over the subsequent 12 months, Domingo predicts large issues, which is able to see the primary $1,000,000,000+ tokenized fund created. When this occurs, he believes that buyers will lastly start realizing the advantages on supply by tokenization (i.e., flexibility and effectivity) and that the sector is right here to remain.
As soon as this happens, the sector will attain an inflection level.