Tokenized Securities

Tokenized securities have been defined by some players in the industry as the next megatrend of the blockchain revolution, bringing the benefits of blockchain into the securities lifecycle.

Tokenized securities could be seen as a form of cryptography-enabled dematerialized securities that are based and recorded on a decentralized ledger powered by DLTs, instead of electronic book-entries in securities registries of central securities depositories. The decentralization of tokenized securities, coupled with the ability to automatically transact and settle without trusted intermediaries, maybe where most of the disruptive potential of tokenization lies. Tokenized securities eliminate the need for the use of intermediaries or proxies in the distribution of dividends or votes, giving investors full control of the equity they own.

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