The securities industry is on the verge of revolutionary new development, one that will change the way unregulated securities are issued, managed and traded.
Templum Co-Founder Vince Molinari and Head of Strategy & General Counsel Annemarie Tierney sat down with Forbes to discuss the enormous potential of digitized securities and how Templum is bringing them to mainstream adoption. They discuss how “smart securities” leveraging blockchain technology will help bring security and transparency to a new type of asset class.
Here are a few highlights from the interview:
- Smart Securities are not ICOs or TAOs – there is a misconception that digitized securities refer to the ICO phenomena of 2017-18, which caused panic and confusion among investors and regulators. Smart securities, first introduced by Templum’s latest partner Symbiont, provide an infrastructure for the clearing, settlement, custody and transfer of digital assets as securities. In other words, they will offer a regulatory-compliant way to issue and trade digitized securities, unlike previous tokenized offerings.
- Regulators Will Become More Involved – As digitized security offerings become more common, the SEC will continue to provide guidance around their issuance and trading, Tierney said. Clear rules and regulations will be critical for both protecting issuers and opening up these assets to a broader range of investors and service providers. In the meantime, Templum will continue to provide the market infrastructure for issuing and trading these securities in a transparent and immutable manner.
- Public Market Volatility Will Drive Up New Issuance – 2018 was the worst year for public stocks in over a decade as companies continue to stay private longer. This will drive more institutional money into the private markets, with asset managers and hedge funds creating private market vehicles for the first time. All of this will only underscore the need for smart securities as a scalable, transparent way to trade private assets.