Today SIX Digital Exchange (SDX) announced it has tokenized the shares of a private company Aktionariat AG in its blockchain-based central securities depository (CSD). The tokenized shares had already been issued on the Ethereum blockchain.
While tokenizing securities should improve liquidity, today that’s often not the case. Part of the issue is the fragmentation of investor pools. You have crypto-savvy investors who are comfortable investing in public blockchain tokens. And you have institutions where sometimes that’s not the case.
By tokenizing the stocks in a central securities depository, you can have the best of both worlds. Crypto-savvy investors can buy the stocks directly on Ethereum. And institutional investors and brokers can can access the stock via a CSD, in a similar way to how they usually access stocks and other securities.
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