How Security Tokens will revolutionize the Financial industry

Ziv Keinan How Security Tokens will revolutionize the Financial industry



In 2019, Blockchain and security tokens are two of the hottest topics in the tech niche. They form an emerging ecosystem that is focusing on connecting the world assets and traditional investments with the world of digital currency.

In the Barcelona Trading Conference organized by Finance Magnates that took place on July 17, various famous CEOs were brought together by Adv. Ziv Keinan, the founder of – Digital Assets Lawyers Law Company. They discussed the importance of using Blockchain and security tokens in the present and how these two components can allow us to enjoy more secure transactions.

Bilal El Alamy,

the CEO & Co-Founder of EquiSafe, has recently finished organizing the first real estate tokenization in Europe. EquiSafe has enabled the purchase of a €6.5 mansion in South Paris using Ethereum tokens. Bilal El Alamy declared that “This was the first tokenization transaction in the EU, facilitated by blockchain technology and regulated by the legal framework in France.”

According to Bilal El Alamy, “the regulatory framework in France is very proactive, so they have managed to authorize the registration and the transmission of securities on the Blockchain and also define legally what a Blockchain is.”

Carlos Domingo,

the CEO & Co-Founder of Securitize is one of the founders of the security token industry. He has many projects behind him as a security token expert. According to Carlos Domingo,

“Securitize has around 40 projects ongoing around Blockchain, and they are barely scratching the surface when it comes to the potential of Blockchain.”

The Swarm project led by Philipp Pieper is an exciting project because it takes the decentralized ideology of the Blockchain ecosystem and tries to integrate them into the daily lives of people. According to Philipp Pieper,

“Swarm started off by building a stack that was on a teller-based infrastructure that was tokenizing LP positions and funds. We learned a lot about the compliance requirements, how to replicate transfer registrations, what are the needs of the issuers in this process, etc. We’ve revamped the entire infrastructure to become Blockchain agnostic.”

Roel Wolfert,

the CEO & Co-Founder of Crypto Delta, add that by declaring that “there is a lot of vagueness in the market when you’re an entrepreneur and you’re running a business.

You don’t want to become a security tokens expert, so you need to put an ecosystem in place that has a simple commitment: to build the future of digital assets. The ecosystem that Crypto Delta created includes custodians, old school banks, technology firms, state-of-the-art Blockchain lawyers, auditors, individual contractors, and large blue-chip companies.

The second objective of Crypto Delta is to work with governments and regulators and shape the laws towards the future so that we keep a competitive edge and an easy environment for investors as well as for issuers of tokens.”

What is the Added Value Blockchain and Digital Assets (Security Tokens) Bring to the Economy?

We live in a day and age where software is eating the world. In 2019 we have the opportunity to untangle financial services. Security tokens live and breathe in the space of financial market infrastructure to give people access in a cheaper way to a 24/7 market and to opportunities they didn’t have access before.

In this whole process, Blockchain can collapse the stack of intermediaries and reduce the workflow necessary to pass compliance and documents from one end to the other.

According to Yoni Assia, CEO and eToro Founder, “one of the core benefits of security tokens is to reduce legal costs. “

However, we’re in a point in time where there are no standards yet, plus there is a big gap in liquidity, so there is an increasing need for rules and regulations.

How to Bring the Institutions on Board?

Bringing big investors in this field and making them feel comfortable investing in security tokens is a precursory need when it comes to digitizing assets. Securities, including private securities, need to become highly digitized products.

Today we are living in an analog investment environment where there is much friction in issuing and trading these specific assets. This is the value proposition to institutional investors.

However, in order to succeed, the key players in this industry need to make the security token product smell and feel like a typical investment process. They need to ensure that this product has all the processes, documentation, and legal aspect adequately tied together. This way, they’ll manage to entice institutions and governments to create a legal environment for trading tokens safely.

The Future of Security Tokens is Here

In the future, the first things that will need to be tokenized are the existing assets that we have today in the world: the existing companies, the existing public market, commodities, and currencies. As a result, people will be able to trade security tokens in the same way they can trade crypto assets.

Yoni Assia,

said that “whatever security tokens and similar assets companies can produce, the eToro platform will be happy to list.”

This is an opportunity eToro wants to leverage, so that they enable their clients to trade anything from any company, including startups.

In the near future, everything will be digitized, including security tokens. Just like the music industry has expanded online, and now people can consume music fully digital, the same should be achieved with security tokens. The financial service industry will be fully digitized, so people will be able to consume securities online and on their computers.

Ultimately, Blockchain and Security Tokens will be a dream of a generation come true

The generation born after 2020 will be able to start capitalizing on the future value they will create in life. As a result, they’ll never have to worry about debt.

To accomplish that, the key players behind blockchain and security tokens will need to move away from the Keynesian inflation model towards a new economic system, in which the population will be able to enjoy a more equal spread of income and wealth, plus recognition of potential and value.

Europe has already started to create powerful regulations, such as GDPR and France’s data protection watchdog. These regulations have a strong impact on businesses operating from Asia or America.

We can only expect Europe to continue to create a streamlined regulatory system in which blockchain and security tokens will become mainstream and will flourish. Moreover, this financial instrument will help create a better world and safer financial transactions.



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