>yeah are you going to move off the permissions blockchain to just permissioned smart contracts on a public blockchain?
Perhaps for clearing - ownership wise I think it stays permissioned - no investor wants to loose the wallet and not be able to recover their asset.
>One day DTCC and FINRA and the Fed will conform it to their redundant processes so that registered securities can do the same, using the same public utilities as everyone else.
100% - that's the plan but it's a massive regulatory capture to fight. Akin to launching a rocket and you need DoD and hundred other permissions.
One thing to keep in mind - Sec Act of 1933 and 1934 are here to stay - they may get new regs under them but ownership needs to be transferable outside just the normal case of trading i.e. trust, death, divorce, birth blah blah...
Aware - and kudos to them for using Ethereum - It's a word play to confuse the market. Notice they don't say on Public Net. The installation is permissioned. I was involved with the first Yankee CD trade in 2018 with JPM. No investor can buy this without the KYC/AML checks, means if there's a wallet it's just a brokerage account - the underlying security is at a custodian not on-chain and the TA is still involved in registering the ownership of the share.
Given that we are now entering another crypto hype cycle and blockchain technology, discussions often veer towards crypto and the allure of embedded tokens. I’m going to stick to the realty and opportunity: utilizing blockchain in fixed income finance.
Having spent two decades navigating the complexities of Wall Street, I know the critical problem plaguing the fixed income market: the overwhelming amount of data generated during the origination of debt instruments and the subsequent challenges in reconciliation during clearing and settlement. Night cycles, calling Bloomberg to fix security master. Calling DTCC to settle trades. Blockchain is the best technology to solve this. Only if applied correctly. Otherwise, it’s a waste.
We started with a fundamental goal: to debunk the myths and misconceptions surrounding blockchain in the securities space. Despite the pervasive FUD propagated by the media, we have now proved to regulators that securities originated on blockchain are indeed securities – not merely speculative digital assets.
At its core, we are looking to address the root cause of friction in fixed income trading: the lack of direct origination and data quality across market participants. By leveraging a permissioned network, we have proved by recording of municipal loans and securities on our blockchain. While it may not be the flashy product that garners headlines, this milestone marks a significant step forward. We also trained all of FINRA’s fixed income examiners….
Our next step is to bring brokered CDs, directly to the investors, giving them access to negotiate with the issuers. From there the goal is to extend to real-time clearing and settlement, streamlining processes and enhancing efficiency across the fixed income ecosystem.
As a CEO and former tech guy (20yr corp and management exp.). A few things
1. Get feedback but make decision and standby it. But be willing to change. Doing things that are unpopular won't be easy especially when you hit a bump.
2. Be willing to fire quickly - including someone that you hired and think they are the best thing.
3. Acknowledge and give credit - Take fault and say you are sorry when things don't go right.
4. Avoid being a buddy buddy, also after parties - you have to wake up the next day look someone in the eye and lead them.
You are the captain of the ship - it's a wild ride, have fun keep your eyes and ears open.
The comment above seems more of religious believe and understanding on your part or maybe practical experience. I can't tell.