Today we will explore a particular domain where tokenization can benefit the economy and how project developers may capitalize on this trend. It is of utmost importance to put into perspective energy trends and initiatives. According to IEA, renewable energy demand will significantly increase in the following decades. How can tokenization help? The global market for blockchain in energy is expected to reach $34.7 billion by 2025.

The Power of Tokenization in Energy 

The concept of tokenization is revolutionizing traditional industry norms, particularly in energy-related domains. The mechanism, at its core, is essentially the conversion of rights to an asset into a digital token on a blockchain. It's a little like swapping paper money for digital currency, only a lot more sophisticated and secure. 

Project developers are beginning to understand the untapped potential of this system. The beauty of tokenization is that it can offer unprecedented access to investments, improving liquidity and enabling fractional ownership. But what does this mean for energy? 

Carbon Credit and Green Energy Resources 

Tokenization can play a crucial role in improving the world's carbon footprint. Project developers can use digital tokens to represent carbon credits, putting a tangible value on reducing carbon emissions. This could incentivize companies to adopt greener practices, as they can sell their saved carbon credits to companies that need them. 

Similarly, green energy resources like wind, solar, and hydropower can also be tokenized, creating an attractive investment opportunity. By buying these tokens, investors are directly funding and supporting renewable energy projects. This could drive more funding toward these essential initiatives and speed up the transition to cleaner, more sustainable power sources. Using blockchain in energy can reduce carbon emissions by up to 5%.

Imagine a world where project developers earn extra revenue every time their credits are traded on the market. This is the power of tokenization, turning traditional royalty schemes into innovative smart contracts. It's a game-changer, opening up new income streams and transforming how we do business.

Peer-to-Peer Energy Transactions: Power to the People 

Imagine now where you can sell surplus energy from your solar panels to your neighbor. Through tokenization, this dream is becoming a reality. Tokenized energy credits enable peer-to-peer transactions, empowering individuals to contribute to the energy grid and earn rewards. 

Accelerating the Transition to Renewable Resources 

Tokenization isn't just about financial gain; it's about creating a sustainable future. By incentivizing the transition to renewables, we're minimizing our reliance on fossil fuels. Thus, we're not just saving money but potentially saving our planet too. 

Meeting Sustainability Goals: Every Token Counts 

Finally, tokenization offers a practical way to measure progress toward sustainability objectives. Each token represents a quantifiable unit of clean energy or saved emissions. Thus, they provide a tangible way of tracking and demonstrating a commitment to a greener tomorrow.

Tokenization has the potential to democratize the energy market. By tokenizing energy units, we can facilitate peer-to-peer energy transactions. This not only makes renewable energy more accessible but also encourages its use. Individuals and businesses can directly purchase energy from renewable sources, such as solar panels or wind turbines, without relying on traditional energy providers that may rely on fossil fuels.

Furthermore, as we transition to renewables, tokenization can provide much-needed capital. By tokenizing renewable energy projects, we can attract a broader range of investors, raising more funds for renewable energy projects. This is crucial for achieving sustainability goals and ensuring a greener future. 

Tokenization can also enable the creation of small-scale microgrid localized energy systems that can operate independently of the main power grid. Tokens can facilitate transactions within these microgrids, allowing for more efficient and cost-effective energy distribution.

Unleashing the Power of Tokenization for Energy and Sustainability 

Ever wondered how tokenization can transform the renewables industry? Let's dive right in: 

1. Unlocking Liquidity and Access to Capital: Imagine buying a slice of a solar panel or a fraction of a wind turbine. That's what tokenization of energy assets brings to the table. It enables investors to purchase fractional ownership of energy infrastructure, opening up a new funding stream for renewable projects and accelerating our shift towards a sustainable energy system. 
2. Power to the People - Decentralized Energy Networks: Tokenization can democratize the energy sector by empowering consumers to trade energy directly with each other, bypassing traditional energy giants. It's a game-changer, isn't it? 
3. Efficiency at its Best: Tokenization can streamline processes in the renewables industry. From issuing and transferring energy certificates to reducing costs, tokenization increases efficiency, making it a vital tool for the industry. 
4. Transparent ESG Data: Tokenization can enhance the transparency of Environmental, Social, and Governance (ESG) data by tracking its origin and verifying authenticity and credibility. This is crucial for maintaining trust and accountability in sustainability initiatives. 
5. Reducing Risks and Costs: With tokenization, high risks and costs associated with asset liquidity and fundraising for development projects are significantly reduced, consequently increasing the likelihood of success. 

In essence, tokenization heralds a new era of financing for renewable energy projects. It makes these projects more accessible to investors while reducing the costs and risks associated with traditional financing methods. The future of sustainable energy is coming, and it's tokenized! Do you have an exciting energy project that will change the world and needs funding? Check our platform Red Matter Capital, where we can make your vision a reality. Our collaboration offering is unique. We provide a fully compliant security token for your energy project and help you market it to investors.

Are you struggling to secure funding for your venture or take your project to the next level? Have you exhausted traditional avenues, such as reaching out to friends and family or approaching local banks and financial institutions, only to be met with unsatisfactory results? If so, there's good news for you: Redmatter Capital offers an innovative and efficient alternative through tokenization.

Entrepreneurs often find themselves in situations where they are tirelessly seeking ways to raise funds. Let's explore some common scenarios:

1. Launching a Start-Up: You have an innovative business idea ready to disrupt the market, but the lack of sufficient funds to kick-start operations is holding you back.

2. Expanding a Business: Your business is performing well, and you're eager to take it to the next level. However, business expansion requires significant capital investment that might not be readily available.

3. Investing in R&D: To stay ahead in a competitive market, your business needs to invest in research and development. However, high R&D costs can quickly deplete your funds.

4. Covering Operational Costs: Maintaining daily operations and paying salaries can burden cash flow, particularly in the early stages of a business.

5. Surviving a Financial Crisis: Uncertain economic conditions or unforeseen business setbacks can lead to a financial crunch, making external funding necessary.

In these scenarios, traditional fundraising methods may fall short. They can be time-consuming, come with high-interest rates, require collateral, or have unfavorable terms and conditions. This is where tokenization comes into play, offering an innovative and efficient alternative to raise capital for your project.

Redmatter Capital provides a platform for the tokenization of assets, unlocking liquidity for entrepreneurs.

Unlocking Liquidity Through Tokenization

Imagine this scenario: You have a brilliant startup idea or a real estate project with promising returns, but you struggle to raise sufficient capital. Traditional financing methods are too slow, complex, or simply unavailable to you. Enter tokenization.

With tokenization, your project's rights to an asset are converted into digital tokens on a blockchain. This means your project, your dream, can be divided into millions of tokens that can be sold to investors worldwide. Tokenization revolutionizes fundraising, offering a fast, secure, and accessible approach.

Why Redmatter Capital is Your Ideal Partner

Redmatter Capital is at the forefront of this financial revolution. We provide a platform that simplifies the tokenization process, even for those new to the concept.

Our platform enables you to break down your project into tokens and sell them to investors globally. This leads to faster fundraising, a wider reach of potential investors, and democratization of investment opportunities. According to the World Economic Forum, tokenization has the potential to unlock $24 trillion in value by 2027.

Experience the Benefits of Tokenization

Tokenization is not solely about raising capital; it's also about making your project more attractive to investors. By dividing it into tokens, investors can buy a small part of your project, making it accessible and appealing to a global audience. Moreover, tokens can be traded on exchanges, providing liquidity to investors and enhancing the attractiveness of your project.

So why wait? Jumpstart your project with Redmatter Capital and experience the power of tokenization. Let's democratize investment together and turn your dreams into reality. Don't let traditional fundraising methods hold you back—embrace the future of fundraising with Redmatter Capital.

Introduction 

Tokenization - breaking down assets into tokens that can be traded on blockchain - has made investing more accessible and opened up many opportunities. It's changing how we think of ownership, worth, and investment. As tokenization becomes increasingly popular, its effects are becoming even clearer; it could have an enormous influence on global economics, finance, and the whole world of investments. 

Tokenization & Its Investment Impact

Uncovering the Power and Potential of Tokenized Assets Tokenization is a game-changer in the world of investing. By breaking down barriers that once blocked access to various high-value assets, tokenizing them now allows investors to own portions of real estate or other prime properties without needing millions upfront. This opens up new opportunities for those with limited funds--revolutionizing how people view and approach investments. The potential implications can be mindboggling; from fractional ownership options previously unavailable due to cost, liquidity issues, etc., there's so much more available regarding asset pools. But what does this all mean? How do we navigate this emerging landscape while keeping risk low? Let’s take an in-depth look at what crypto tokens have on offer. Tokenization is revolutionizing the investment world by introducing fractional ownership to a broader range of investors. This concept has major economic implications that could globally impact trillions in illiquid assets, trade, wealth distribution, and liquidity. The long-term effects are tremendous; tokenization can create new markets for opportunities - stimulating innovation and entrepreneurship while driving positive economic growth worldwide. It's no surprise why experts believe this will have an unprecedented effect on how we interact with money in the future. 

The Coming Age of Investing

We are in a new era, a new wave that will revolutionize investing for everyone. Tokenization is making it possible for anyone who has access to the internet to invest in any asset they wish, regardless of their location-- something which, until recently, was only a dream. As an investor, getting ready and staying ahead with this massive change is essential if you want your investments to succeed. Tokenization isn't here today and gone tomorrow; instead, it represents one significant shift in how businesses operate globally! It eliminates ground-level obstructions and traditional financial processes, thus producing an international market that encourages economic growth while being open even up to those previously excluded from finance activities due to somewhat restrictive rules or other conditions. What used to be out-of-reach before will now become easily attainable— no wonder so many are looking forward to this upcoming tokenized future!  

Guidelines for Compliant Token Launches

As the adoption of tokenization picks up steam, it's crucial to follow specific rules in order to have a compliant token launch. Industry experts suggest exercising caution when selling tokens to people from the United States due to its potential legal implications. When promoting their tokens as an investment opportunity, founders should be honest and not exaggerate to avoid unwanted outcomes. Compliance and risk mitigation should be top priorities during listings, and discussing the price increase is not recommended. Additionally, having a wide range of investors and decentralizing ownership will draw more attention from possible buyers and likely maximize token values. 

Tokenization: A Bright Future Ahead 

Tokenization is no longer an abstract concept of the future; it's already happening today, and its effects will be profound. Some experts even say that tokenization could potentially have a similar magnitude of impact on us as when the Internet was introduced in the 1990s. The Internet completely transformed how we live our lives - similarly, with tokenization, massive disruption across global economies, financial systems, and investment practices will revolutionize how the business world operates and increase market effectiveness. Numerous advantages come with this development, such as greater efficiency, cost savings, improved security, and more accessible access to international markets. 

Conclusion

Tokenization is a game-changer in the world of finance and asset ownership. It has enormous potential to increase market efficiency, create jobs, enable financial inclusion for all, spur innovation, and encourage entrepreneurship. As more industries adopt this new tech, it's clear that tokenization will become increasingly prominent - with wide-reaching implications on how we handle money matters like investing and trading. For business owners, investors, or anyone intrigued by emerging technological advancements – it’s essential to keep track of these exciting developments coming from tokenization! The best place to start is the Red Matter Capital. The effect that tokenization could have on our everyday lives really cannot be understated; transforming how we do transactions & make investments while completely revolutionizing our ideas about currency & capital overall in no time.

There has been a lot of news around the potential of tokenization and its legal implications. Shown as a solution for an old problem of liquidity, it triggered interest in various communities worldwide. By providing accessibility to different investor tiers it unlocks wealth generation. 

What Exactly is Tokenization? 

Let's break it down. Tokenization refers to the process of turning real-world assets into digital tokens on a blockchain. This could be anything from real estate, art, or even a company's equity. It's like transforming a Picasso painting into a thousand tiny, digital pieces that can each be bought, sold, or traded separately. 

The Ripple Effect of Tokenization 

So why is tokenization creating such a stir? Simply put, it democratizes investment. No longer are high-value assets reserved for the wealthy few. By breaking assets into smaller, more affordable pieces, more people can get in on the action. Think of it like buying a slice of that Picasso, rather than the whole painting. 

Tokenized assets also provide more liquidity and faster transactions. They can be traded 24/7, without the need for intermediaries or hefty fees. It's investment revolutionized, and the world is catching on. 

Unlocking Opportunities with Red Matter Capital 

Now that you've got a taste of what tokenization can do, you might be wondering how to get involved. That's where Red Matter Capital comes in. As a leading investment and advisory firm, it specializes in the tokenization of assets, offering a seamless pathway for both investors and fundraisers. 

For investors, Red Matter Capital offers access to a diverse range of tokenized assets, opening doors to investment opportunities that were previously out of reach. For those looking to raise funds, they offer a comprehensive suite of services to guide you through the tokenization process, ensuring your asset reaches its maximum potential. 

Tokenization is more than a buzzword. It's a game-changer. And with Red Matter Capital, you can be a part of it. Ready to dive into the world of tokenization? Visit Red Matter Capital to find out more.

Understanding Tokenization 

What is tokenization, you may wonder? It's a process where the value of an asset is converted into a token that can be moved, recorded, or stored on a blockchain system. Essentially, you're creating a digital representation of a physical asset. 

Now, let's imagine you're a proud owner of a rare, eye-catching Picasso painting. But, instead of keeping it locked in a vault, you tokenize it. Suddenly, this priceless masterpiece can be owned by hundreds, even thousands of art enthusiasts, each holding a piece of the digital pie. That's the magic of tokenization! 

“Tokenization has the potential to democratize access to investment opportunities and make the financial system more inclusive.”

- World Economic Forum

The Potential of Tokenization 

Tokenization isn't just about art. It can be applied to a plethora of assets, real estate, commodities, even private equity. The allure? It democratizes access to investment opportunities. 

Normally, premium investments are available to a select few, but tokenization changes the game. It lowers the barrier, making wealth generation a possibility for a broader range of investors. Suddenly, anyone with a smartphone and internet connection can invest in a Picasso or property in Manhattan. Here's a game-changer for you: liquidity can skyrocket by a staggering 30% thanks to tokenization. Did you know that this digital marvel could give your investments such a significant boost? 

“Tokenization can unlock trillions of dollars in illiquid assets and create new investment opportunities for both institutional and retail investors.”

- PwC

Red Matter Capital: Your Guide in the Tokenization Journey 

Certainly, navigating this new world of tokenization can be daunting. This is where RedMatter Capital can be of immense help. It provides a platform that simplifies the tokenization process, making it accessible and understandable to all. Red Matter Capital is a service provider for tokenization and fundraising solutions.

Whether you're an investor looking for a new opportunity or a business looking to raise funds, RedMatter Capital is a reliable, trustworthy partner. It offers comprehensive services that guide you through the complexities of tokenization, ensuring a smooth, rewarding journey. Red Matter Capital can also help investors and fundraisers by providing access to their extensive network of industry contacts. This can be particularly valuable for those who are looking to raise funds or find investment opportunities in niche markets or emerging industries.

So, why wait? Dive into the exciting world of tokenization and uncover the wealth generation opportunities it has to offer. With RedMatter Capital by your side, you're in capable hands. 

Introduction: Tokenization is revolutionizing the financial industry by introducing transparency, fractionalized ownership, and liquidity to investing. With the market value of real-world assets estimated at around $610 trillion globally, tokenization has the potential to streamline markets and make them more secure. While asset tokenization offers numerous benefits, it can only succeed if accompanied by strict adherence to legal compliance. This article explores the importance of legal compliance in asset tokenization and its impact on the future of capital markets.

The Role of Blockchain in Asset Tokenization: Asset tokenization, especially in the real estate industry, has gained momentum with the advancements in blockchain technology. Industry giants such as Microsoft, Vanguard, and Sotheby's are embracing asset tokenization to digitize industrial assets, securities, and real estate. By leveraging blockchain networks, asset tokenization ensures secure and transparent asset management across various industries.

Importance of Tokenizing Real-World Assets: Traditional assets such as stocks, real estate, and commodities are difficult to physically transfer, leading to complex legal agreements. Tokenizing physical assets not only enhances efficiency but also enables the transfer of asset ownership through the transfer of tokens themselves. This innovation presents a tremendous opportunity for companies to unlock the value of illiquid assets and raise capital for projects.

Legal Compliance: A Crucial Aspect of Security Tokens: For security tokens to gain mainstream adoption and trust, legal compliance must be a top priority. Failure to adhere to regulations can lead to penalties, lawsuits, and criminal charges against token issuers and exchanges. Non-compliance also undermines the legitimacy of security tokens and damages investor confidence. It is essential for issuers and exchanges to work closely with regulators to ensure compliance with all applicable laws.

Existing Securities Laws Apply to Security Tokens: Security tokens, like traditional securities, are subject to existing securities laws and regulations. Issuers must register their offerings with the appropriate regulatory bodies and provide investors with necessary disclosure documents. Ongoing reporting requirements and compliance with trading restrictions are also crucial. Understanding and complying with securities laws is essential for security tokens to succeed.

The Howey Test: Determining Security Token Status: To determine whether a token qualifies as a security, it must pass the Howey test established by the Supreme Court. The test examines four criteria: investment of money, common enterprise, expectation of profits, and profits derived from the efforts of others. Tokens that meet all four criteria are subject to securities laws and must be registered with the appropriate regulatory authorities.

Key Areas of Legal Compliance for Security Token Issuers: Security token issuers must address several areas of legal compliance, including securities law compliance, KYC/AML compliance, privacy and data security compliance, and tax compliance. Compliance in these areas ensures legal operation, risk mitigation, and protection of investor interests.

The Future of Security Tokens and Compliance: To achieve mainstream adoption, security tokens must comply with regulations and gain the trust of investors and regulators. A harmonized regulatory framework, along with clarity and guidance from regulators, is necessary to foster innovation and build a sustainable security token market. Compliance should be prioritized to ensure long-term success and investor participation.

Conclusion: Legal compliance is non-negotiable for the success and mainstream adoption of security tokens. As an investor, it is essential to understand the risks and regulations associated with security token investments. By demanding high standards of legal compliance and transparency, investors can shape the growth of the security token industry in a sustainable manner. Compliance is the key to establishing trust and realizing the potential of security tokens to transform capital markets and create new investment opportunities.

 OVERVIEW

Red Matter is a regulated platform for issuing and trading in multi-class, asset backed digital securities, utilizing Blockchain smart contracts to execute and settle transactions without the need for back-office, legacy systems.

Red Matter enables investors to easily trade in public (US Equities, Bonds, ETFs, Commodities) and private securities (a company’s shares, account receivables, property, contracts) as tokenized assets held under custody.

A white label version of the platform is made available to asset managers, broker-dealers and fin-tech companies in the web3 space to list and sell public and private securities under their own brand, utilizing Red Matter’s regulatory license or their own license issued in their registered domicile.

Additionally, approved platform subscribers are able to create their own structured financial products such as sovereign bonds, crypto ETFs and funds to disrupt an institutional market by tokenizing and fractionalizing real world assets that have high liquidity. A REPO lending margin on bonds is available through the RMC Digital REPO Desk for investors to obtain high yields on invested capital.

There are 3 modules that make up the platform:
• Admin console
• Issuer module
• Investor module

ADMIN CONSOLE

The admin console is the ‘back-end’ platform application that controls operational activities on the platform including managing the blockchain and smart contracts, issuer and investor onboarding, listing of private and public securities, trading activities and payments.

ISSUER MODULE

The issuer module manages the listing of projects which have been approved and allowed to publish their investment offers on the platform in the form of tokenized securities.

The issuer onboarding provides a set of content templates based on the type of project and asset that they are seeking to tokenize. Depending on the asset type selected, a smart contract is deployed for the issuer along with a unique token with price set by parameters inputed by the issuer (currency, token price unit, number of token units for sale etc.).

The issuer approval process is split into 2 parts:
1. Project content: information on the project and team
2. Investment offer: the asset that is being tokenized and documentation provided via a Proof of Asset protocol

Both parts involve an admin console approval prior to the project being approved for publishing and token sale.

The token issue is an ERC 20 token that can be listed on both the platform exchange as well as on a DEX market like Pancake Swap as a BEP 20 token that is pegged 1 to 1 with the ERC 20.

For more detailed information please view here . The table below provides a key functionality overview of the issuer module.

INVESTOR MODULE

Investors are able to purchase regulated securities, either public or privately and that are listed on the platform’s exchange.

Additionally, security tokens can be staked as a BEP 20 synthetic, pegged 1 to 1 with the security token. Because the BEP 20 synthetic is fully backed by the security token asset, the synthetic tokens are protected against speculative devaluation as the tokens can be swapped back to the security token at any time.

For private assets, listing on a DEX market creates liquidity and additional yield for investors.

For more detailed information please view here. The table below provides a key functionality overview of the issuer module.

Tokenization is solving issues by introducing data transparency and operational efficiencies with the benefits of fractionalized ownership and liquidity to real estate investing. As per recent reports, the market value of all real-world assets is ~$256T globally.

Real estate is one of the most illiquid assets requiring last capital investment and cost transaction. The previous year global estate investment reached a hike of $930 billion.  Tokenization has taken a new wave of technology by innovating real estate solutions for the digital era, bringing greater efficiency and stronger security to the financial industry. However, the process of trading real assets is still primitive due to increasing transaction time and costs. Subdivision of such assets is limited and hence constraining liquidity. Tokenization of real-world assets has been playing a major role in asset management for many years to come. It holds the potential to streamline countless markets while making them secure.

Blockchain and Its Impact on Asset Tokenization

As such, asset tokenization is the most prominent use case of the blockchain industry and the growth encompassing nearly all human economic activity. In the past few years, big enterprises such as Deloitte, BNY Mellon and more have analyzed the tokenization of real-world assets and given the report. Accordingly, it says, real assets possess the ability to disrupt multiple industries, including global securities and the real estate industry.

Microsoft, Vanguard, and Sotheby’s are now tokenizing industrial assets, securities, and real estate, respectively. As a result, tokenizing assets are among the most important innovative applications of blockchain.

Tokenizing Real-World Assets Is The Future Of Capital Markets!

For investors, blockchain networks ensure information encryption and transaction traceability. This combination of blockchain technology and asset tokenization have resulted in secure, transparent, and progressive asset management in numerous industries.

Why Tokenize "Real World" Assets?

We are surrounded by assets classes like stocks, real estate, gold, oil, etc. They are hard to transfer physically, so buyers and sellers trade certificates. But all the complexity of legal agreements is cumbersome, expensive and time consuming.

Tokenizing physical assets not only creates significant efficiencies but transfers the ownership of the asset when the token itself is transferred.

Asset Tokenization: A Buzzword or An Opportunity?

The process of issuing tokens digitally represents tradeable assets which are issued through security token offerings (STO) and can be traded on a cryptocurrency exchange. Commercial estate companies are known to tokenize their illiquid property assets for more liquidity and appreciation. Asset tokenization is not just a buzzword; it clearly gives a great opportunity for companies to unlock their asset value in illiquid assets to raise funds for their projects.

Solving the Case by Issuing a Security Token On RedMatter

A company can easily issue a security token for an asset registered on RedMatter and enable smart contracts trading of asset backed tokens. Asset classes can include:

• Real estate
• Media and digital content
• Stocks inventory
• Shares in a Pre-IPO company
• Digital content
• Metal commodities
• Collectibles

Listing a project is based on the type of asset-backed security to be issued. So, first of all, register a project by creating an investment offer. Here are the steps involved:

Step 1- The company needs to fill out the information about the project, upload content and provide a list of team members.

Step 2- Provide the details and legal data of a company, investment offers and its type, asset, asset valuation, and amount of funding that needs to be raised.

Step 3- After registering as a company looking for funds, you have to create a project by logging in to the dashboard and clicking on "Add Project".

Step 4- Now, obtain the project approval. Again, the information is reviewed, and the status shows ‘Waiting for Approval’. After approval, you will receive the ‘Create Investment Offer’ button.

Step 5- Proceed by providing details of the offer and issue tokenization of real-world assets. The Invest Offer status is ‘Waiting for Approval’ while it's under review. You can edit the offer meanwhile. When approved, the company can issue its token for investors to purchase.

Trading Securities

You can also list your tokens on Red Matter’s centralized exchange by navigating the ‘List on RMC’ button. Also, you can choose ‘List on DEX’ for listing a token on a decentralized exchange (Pancake Swap). Digital securities are issued on Blockchain smart contract backed by a tokenized asset. The securities are held one to one against the asset, which allows it to trade easily on decentralized exchanges or investors in the crypto community. RedMatter accepts LTC coins as a fast booking medium unless the investor proceeds to fund in advance with fiat. Transactions on Blockchain smart contracts are credited in seconds with crypto, while fiat may take days to be received.  When Red Matter receives an LTC transfer, it is converted to fiat and funds are transferred to the RedMatter broker account.

Technological innovation is ushering in a new era of payment that is more accessible and flows across borders swiftly. Decentralized finance grew from $15 billion at the end of 2020 to about $110 billion in 2021. Digital Securities have received a lot of attention recently! In fact, global investors are paving the way for STOs as a mainstream form of financing.

Meanwhile, the Decentralized exchanges are focusing on developing new issuance solutions to optimize the most of blockchain and digital security token. Issuance and exchange of digital assets are technically accessible for everyone, and all other aspects of the lifecycle have been neglected. Decentralized exchanges are creating blocks of the DeFi (decentralized finance) ecosystem. Users now trade crypto directly without using an intermediary. The need for a credit risk evaluation has been eliminated. Read on to seek a detailed analysis:

Potential DEXs Finance

DEX investors place new asset-backed tokens against crypto assets. The objective is to enter and exit the process at a higher exchange price. In certain cases, an annualized percentage on stable coins is obtained, 10X or more than fat deposits. Staking digital assets on a smart contract that conducts new tokens offers high liquidity and influences the protocol by receiving transaction fees. 

Decentralized exchanges are non-regulated, and hence SEC may take action against current regulations that attract investors with the promise of returns. Some DEXs use borderline practices interpreted by the SEC as violating securities laws. DEX validated the concept of decentralized tokenization platforms where crypto investors create liquidity pools for new tokens and swap them with listed cryptocurrencies.

Transformative Impact on Investment & Beyond

Popular DEX investing method accounts for a 3% market share in the crypto-finance space. The cryptocurrency world promises to make money universally accessible to everyone globally. At the same time, Decentralized Finance (DeFi) takes that promise a step further. The decentralized world is different from everything we have ever seen before. Investors who need robust training in a volatile market must invest in DeFi protocols. The growth of decentralized finance is stumbling, with a market cap hitting close to $100 billion this year and the important aspect of this growth is decentralized exchanges (DEX). They manage liquidity and execute trades with smart contracts. It removes the need to rely on central authorities and intermediaries for a peer-to-peer trading environment.

What’s next for DeFi?

Finance has always been in one form or another since the birth of human civilization. The digital security token is the latest financial service that we use in today’s fiat system. The world has already seen asset issuance, exchange, borrowing, lending, and so much built-in crypto space. So, what's next!

The generation relies on collateral as a safeguard; you need to own crypto in order to borrow more crypto. However, traditional borrowing and lending will need to rely on an identity system, unlike today's credit systems. A universal decentralized identity that seeks privacy can be seen as an innovation in space. However, the black swan for DeFi is a smart contract vulnerability. Millions of dollars could be drained instantly if a bug or hack exploits an open source.

Choosing DEX Signifies:

Greater Access- No user data is required to trade on DEX, but a public address is needed before starting the process. So you are not subject to any interference done by a central entity. As a result, DEX represents a more inclusive and equitable ecosystem. The ‘non-custodial' process also lets DEX users access their private keys.

Secure Exchanges- CEX users cannot control private keys and can be attacked. One of the biggest examples was BitMEX being hacked in December 2020. DEX seems to sidestep this risk by offering trades through smart contracts without having to be passed through an intermediary third party.

Better Privacy- Data leakage is on top of every investor's mind! DEX doesn't need you to provide sensitive personal details to third parties while registering for exchange. Everything is logged, traceable and transparent. Trading on CEX occurs off-chain in local databases, which means there is no proof that someone bought something at a given price.  Well, this can’t happen on DEX.

Reliability- DEX is a more reliable option that has no centralized entities with total control. They can simply shut down trading when the market crashes or when a number of users liquidate their assets. However, with growing technology, there is still room for improvement.

But how is RedMatter Capital unique?

This platform is completely regulated under Montenegro’s Capital Markets Authority license. Users can issue and trade asset-backed security tokens on DEXs. In addition, RedMatter invites issuers to create digital security token by physical and digital assets to trade on DEX marketplaces.

RedMatter Capital Mechanics

RMC (RedMatter Capital) private Ethereum based digital securities are converted into BSC (Binance Smart Chain) Tokens listed on decentralized exchanges. BSC is preferred over Ethereum due to its lower cost and high speed of transactions. Here is step-to-step guideline for your convenience:

1. First of all, issuers register security such as equity, debt, revenue share, etc., on RMC. Let's name the asset backed tokens of RMC private Ethereum ERC 20 type ’BLCK.’ Now, assume BLCK tokens are purchased at 1 USDT. The primary market offering securities of the issuer are priced in fiat or stable coin.
2. After that, the issuer can convert BLCK tokens into BSC tokens at one conversion rate. For example, let us say that the converted BSC token ‘BLCK X’ is a BEP 20 type token. So, 1 USDT purchase 1 BLCK X token.
3. A new Binance Smart Chain Contract is generated while issuing the BLCK X tokens. Now it can be paired to a BSC cryptocurrency such as XRP, LTC, BNB, or others listed on DEX. For example, 500 BLCK X will be traded for 1 BNB on crypto exchanges.
4. Issuer stakes BLCK X tokens into a liquidity pool against the valued amount of BNB tokens to Automated Market Maker (AMM).
5. DEX for supporting trading liquidity. BLCK X is airdropped to identified major liquidity providers. DEX traders can buy and trade BLCK X for BNB tokens in their wallets.

Digital Security Token: A Boon for Digital Era

The idea of denominating fractional ownership of a real asset in digital security tokens is more structured. Investors can see if the ownership stake is preserved on the blockchain ledger. A security token is a bridge between the traditional finance sector and blockchain. Assets divide up through tokens that exist in the traditional market like equities (either public or private equity) or real estate. Many platforms directly undercut ICO models by tokenizing equity rights for pre-IPO companies.

Utility tokens have been restricted, and companies raising capital can circumvent institutional finance and the costs involved. The volatility of the crypto market has become riskier to launch an ICO and expect stability to run a company. Many projects take cash out immediately to remain solvent. ICO participants are “investors,” opening doors to new ideas.

In A Nutshell

RedMatter is the first-ever DEX smart contract to trade BSC tokens backed by digital securities against crypto. We provide a new way to invest assets safely. While DEXs are ahead in the market, DEX 2.0 brings together both traditional and crypto investors to trade in tokenized physical assets.  Our Proof of Asset protocol registers assets on smart contracts, and asset-backed security tokens are traded on decentralized exchanges. Talk to our experts today and learn more about the process!

Why Millennial investors and tech are changing how markets work

Tech-savvy millennials have been exhibiting an appetite for making their own decisions and choices on where to invest their money, a very different approach than that of their parents who heavily relied on personal relationships with their investment broker or banker.

Given the level of access to financial information on companies and markets, all it takes are a few clicks on an app for millennials to undertake some research on a company, review a prospectus, get advice and commit funds.

Other indicators support the idea of a radically different approach to investing:

- Millennials comprised 57% of the consumers buying cryptocurrency in 2020

- The average age of a Robinhood user is only 28 , 78% are under age 35

- Factors such as social responsibility and environmental responsibility play a key role in where money is invested

- More than 30% of millennials are more loyal to brands that are technology focused.

Millennial locked out of pre-IPO, private markets

Examining the price growth curve of highly successful listed companies, its easy to see why direct investments into pre-IPO companies would fit into the millennial investor’s approach and interest areas.

Typically, a slow price growth between Year 4 and Year 1 is followed by an X times price increase in the 12 months prior to an IPO listing and opening day trades.

Let’s take a look at an example: Slack, the popular business collaboration application went public in 2019. Slack’s stock was valued at $11.91 per share in the last VC funding round 2018. In less than a year, Slack’s shares after IPO opened at $38.5 per share or 225% above the last private funding in the prior 10 months period.

The typical case seen with Slack and other unicorns is explained by the fact that a private pre-IPO market was held by the founders and early-stage investors using offline brokers and investment banks that resulted in pre-IPO trading activity ahead of the actual listing. Moreover, the level of activity directly co-relates to the anticipated listing time and forecasted opening day pricing, thereby explaining the fast run up in prices only months before, as exhibited on the chart below.

Moreover, the level of activity directly co-relates to the anticipated listing time and forecasted opening day pricing, thereby explaining the fast run up in prices only months before, as exhibited on the chart below.

As much as millennials would be likely to participate in a pre-IPO market, they are locked out as investors are limited to accredited investors (in most cases) and large transaction sizes (several million at minimum), thereby restricting the market to wealthy and institutional investors.

Between the time of the private market close and opening day trades, marketing noise usually gets applied to pump up the prices, arguably at the expense of the retail investor. As a case in point, shares of Airbnb originally priced at $68 prior to listing, opened trading at $146 per share but closed the day at $144.71.

The above examples are not the only factor why 86% of Millennials said they distrust Wall Street but it’s a good example. As Elizabeth Warren states: ‘It’s not about protecting people from making bad trades. It’s about keeping the playing field level…Wall Street is a rigged game’.

Democratizing investments via a public pre-IPO market

The SEC would state that securities laws are designed to protect the individual, non-professional investor from investing into companies who haven’t filed a prospectus with the SEC. However, those same laws are used by Wall Street to take advantage of retail investors.

Democratizing the pre-IPO market would need a large re-think of current regulatory frame works in order to allow retail investors to purchase and trade in early-stage companies. An additional problem for regulatory agencies is that technology is evolving faster than their ability to keep up, as exemplified by crypto currency markets, new asset backed tokens such as NFT tokens and products built on decentralized Blockchain applications.

Although there are existing platforms presenting pre-IPO investment opportunities, the limitations for accepting only accredited investors from specific countries of residence and without a secondary market — all put up serious obstacles for investing into the next unicorn.

Fractional investing: digital securities on Blockchain

To realistically implement a public market for pre-IPO companies that supports fractional investing , the technical issue of how to settle small volume trades at a low cost is a big issue.

However, innovative Blockchain marketplaces provide a solution via decentralized peer to peer trading where fractionalized trading is fully automated and executed at virtually zero cost using Ethereum smart contracts:

- Shares or other company assets are registered on Blockchain

- Investment security terms entered off chain are uploaded to a smart contract

- Digital security tokens, backed by the shares on the physical company registry, are issued

- Buyers purchase any amount of asset backed tokens representing the underlying asset (e.g. (e.g. a fractional share)

- Payments are made by credit card or crypto for real time transfer of tokens to a buyer’s wallet

- Buyers and Sellers can trade tokens on the secondary market without any restriction

New regulatory environment: investments for everyone, anywhere

Regulatory agencies are reluctant to adopt new regulations markets that support technological innovations such as trading digital securities.

However, new capital markets like Montenegro (the small Balkan country that borders the EU) are embracing the potential. Recently, the Capital Markets Authority of Montenegro (the equivalent of the SEC) has provided a license to Red Matter Capital to issue digital securities for companies from any domicile and to allow investors (including retail) to purchase and trade asset backed token on a secondary market.

The Red Matter Capital platform is a good example of how private capital can be more efficiently raised when connecting issuers directly with followers who support innovation and believe in the value of a company.

Technology will eventually level the playing field, allowing millennials and future generations of investors to directly participate in the success story of companies that represent their values and interests.

If you are an investor or company interested in digital securities and want more information on Red Matter Capital, please free to reach out to me at info@redmatter.capital. Sign up early to get a free account at https://www.redmatter.capital .

Overview

DEX investors place bets on new tokens issued against tradeable crypto currencies with the intention to exit at a higher exchange rate and in some cases to obtain an annualized % on stable (pegged) coins that is 10X or more over fiat deposit rates. Additional scenarios involve staking crypto on a smart contract that governs the new digital security token to provide liquidity with the advantage of influencing the protocol and receiving a % of transaction fees.

The Perspective on DEXs

Some DEXs have used borderline practices that in the past have been interpreted by the SEC as violating securities laws.  Since DEXs are non-regulated markets, there is a strong possibility that the SEC may take action against current DEX practices that are designed to attract investors with the promise of returns.

From a market perspective, DEX have established and validated the concept of decentralized exchanges where crypto investors create liquidity pools for new asset backed security tokens that can be swapped against listed crypto currencies. 

There are opinions (which we agree with) that DEX investor returns of 100X are a bubble that will pop whenever a correction hits financial market.

DEX Evolutions

 DEXs rely on crypto owner appetites for greater returns but are limited to trades involving crypto assets and currencies. The question to be asked is why aren’t minted new tokens hedged against physical assets such as stocks, commodities, indexes, debentures, shares in pre-ipo companies, real estate and even digital media assets. The answer is that this would fall within the Howey rule definition of a security and consequently be subject to SEC actions. As Red Matter Capital (RMC) is a fully regulated platform under Montenegro’s Capital Markets Authority license and is able to issue and trade securities, RMC is able to list asset backed security tokens on DEXs.

Red Matter will differentiate itself and be poised for DEX 2.0 by inviting issuers on its platform to create digital securities backed by physical and digital assets that can be traded on DEX marketplaces.

The Mechanics

Red Matter will uniquely convert RMC private Ethereum based digital securities into Binance Smart Chain (BSC) tokens that can be listed on DEXs (note: BSC is considered a better choice than the Ethereum mainnet for significantly lower cost and speed of transactions).  

Here’s how it works:

 Step 1: issuer registers a security (e.g. debt, equity, revenue share...) and issues security tokens on the RMC platform. Those tokens are RMC private Ethereum ERC 20 type tokens and for this example lets name the issuer token ’BLCK’). Let’s assume that BLCK token can be purchased at a rate of 1 USDT for 1 BLCK token (note that issuer securities are normally priced in fiat or stable coin). This is the primary market offering for digital securities.

Step 2: issuer is able to convert a portion of BLCK tokens into BSC tokens on a 1 to 1 conversion rate. Let’s call the converted BSC token ‘BLCK X’ which is a BEP 20 type token. In effect, 1 USDT purchases 1 BLCK X token.

Step 3: a new BSC smart contract is deployed by RMC at the time of issuing the BLCK X tokens which can then can be paired to a BSC crypto currency like BNB (or XRP, LTC or other coin) and then be listed on a DEX. In our example, let’s assume BLCK X is paired against BNB on a DEX, where 500 BLCK X will trade for 1 BNB (we assume here that 500 USDT buys 1 BNB on crypto exchanges).

Step 4: issuer stakes an amount of BLCK X tokens into a liquidity pool against an equal valued amount of BNB tokens in order for an Automated Market Maker (AMM) based DEX to support liquidity on trades. Additionally, issuer airdrops BLCK X to identified major liquidity providers to

Step 5: DEX traders can then purchase and trade BLCK X for BNB tokens in their wallet as they currently do now.

How DEX trades benefits the issuer

The issuer can devise a range of tactics using tokens to motivate crypto owners to purchase BLCK X. For example, an airdrop can provide a reward in exchange for creating a liquidity pool for BLCK X on the DEX (see below). As demand grows, the trading price on the secondary market for BLCK X also creates demand for BLCK on the primary exchange.  

Here is an example of how that can occur:

When BLCK X tokens are first listed on DEX, the price is based on the USDT price for BLCK. So, the initial listing price would be 500 BLKC X to 1 BNB. When demand grows for BLCK X, the rate may positively change to 300 BLCK X to 1 BNB. 

However, the issuer’s Ethereum smart contract for BLCK tokens has a fixed at the rate of 1 USDT to 1 BLCK token. Assuming the USDT price to BNB is still at approx. 1 to 500, an arbitrage opportunity opens up for a trader to purchase BLCK on the primary market and then convert it into BLCK X, providing a much lower BNB rate of exchange than what is being traded on DEXs. 

For the issuer, the DEX listing therefore creates demand for purchasing digital securities on the primary market, which is further enhanced over time as the issuer’s business grows and a new round of securities are issued. Traders can swap in and out of the 2 issuer tokens based on the value and arbitrage between the tokens relative to crypto currencies.

In this way, an RMC private Ethereum ERCC 20 digital security token that is convertible into a tradeable BSC BEP20 token creates demand and subscription for an issuer’s securities without expensive marketing and legal costs. Importantly, the BSC tokens are linked to the issued digital security token and consequently the BSC token price is additionally influenced by the future price of the ERC 20 token

Game Theory

PancakeSwap and SushiSwap have demonstrated that gamification plays an important role for crypto traders on DEXs. 

Red Matter can adopt a sci-fi theme (vs. farming and food theme) to engage DEX players in view of the fact that its name is derived from an event that occurs in the popular sci-fi series Star Trek, where Red Matter can create singularities and multi time wormholes.

 The concept that could be adapted is to issue a reward token called ‘Dilithium’ which is a mineral that powers ‘Warp Drive’ for interstellar travel. 

 Let’s look at only one example of how game rules can provide a high level of engagement:

• When airdrops happen, they give free Dilithium tokens (DLT)
• DLT is also acquired in return for staking the BLCK X token with BNB in the liquidity pool
• When enough DLT tokens are on a user’s wallet, they power Warp Drive which gives liquidity providers an extra % of trade commissions on DEX

Summary

Red Matter positions itself to become the first DEX where digital securities back up BSC tokens that are traded against crypto. This would differentiate against current DEXs while being ahead of the market for deploying DEX 2.0 which will bring together both traditional and crypto investors to trade in tokenized physical assets.

 Initial comments by DEX traders on Reddit corroborate this in comments to our question regarding the future of digital securities on DEXs:

‘You’re absolutely right. and I know securitisation is a scary word but I think it is a natural evolution. and I’m really excited about it’ – DeFi Reddit forum

Every asset sold through a smart contract issues goes through a Proof-of-Asset protocol in order to be able to issue security tokens. These tokens are sold during the funding period of an asset that represents the economic benefit of owning a fractional share of the asset. This means token holders are entitled to asset appreciation and that of the digital security token. For example, a building is sold for 15,000 ETH.  The smart contract issues a "Proof of Asset” passed token to investors to purchase which can then be traded.

The "Proof of Asset” Protocol is based on an Ethereum Blockchain smart contract. The Blockchain Service Architecture can be structured with a sequential chain of smart contracts and supplemented with oracles. Which financial asset needs to be tokenized depends upon the number of steps and the type of project requiring financing. The "Proof of Asset' Protocol can be used by traditional financial institutions for issuing asset backed security tokens. The protocol tends to maximize the liquidity of real-world assets while delivering constant updates to investors and owners at the same time.

Red Matter’s Proof of Asset Protocol

The Proof of Asset protocol lets a business issue asset-backed security tokens. Investors shield crypto or fiat against real-world assets to get better capital appreciation. Red Matter issues digital securities, publicly listed equities, ETFs, and commodities for Pre-IPO companies. Each asset is given a token symbol on the blockchain and underlying smart contract. Investors purchase securities without prefunding a brokerage account. When the order is completed, shares are held with brokers, banks, and companies looking to raise private capital. In return for the assets you purchased, you receive digital security token in your wallet. These securities can be transferred and traded easily with other investors of Red Matter as a BSC synthetic token.

How can you list securities on RedMatter?

Buy stocks and commodities- You can purchase as many financial assets you want here (unless the account holder is domiciled in an OFAC country). However, you need to add extra information about your personal details, including ID, proof of residency, and address on orders greater than USD 5,000.

Place an order- After buying the commodity or stock, you will receive a booking confirmation on your purchase and the status of your order. When the field is replaced with "Filled," the order gets processed and accepted on our end.

Trade digital security tokens- After the order is "Filled," digital securities are issued on a Blockchain smart contract. This is strongly backed by the stock that was purchased. The securities are pegged against purchased assets that allow investors in the crypto community to trade on decentralized exchanges easily.

Pay for financial securities- Red Matter accepts only LTC coin as instant booking unless the investor funds their account in advance with fiat.

LTC support- Crypto transactions on smart contracts can be done in seconds. Alternatively, it can take a few days before it is received, rendering a limit order price invalid that the buyer set. So when we receive an LTC transfer, it directly converts to fiat. The funds are transferred to our broker account and executed within 1-2 hours.

Fiat Funding- Investors can fund their trading accounts with fiat. Send the amount you wish to fund your account based on expected trades in USD or Euro. When the amount is received, the user can see their dashboard and book an order to receive trade confirmation.

Cashing out of your security tokens- At the end, you'll find your financial securities represented as tokens on the Red Matter Primary Market Exchange. Place the cash-out request as a Sell Order (terms and conditions apply).

To sum up

Blockchain and DeFi has changed the way people invest in securities and companies. People are free from barriers that currently prevent them from investing into a portfolio of assets that provides opportunities for stable growth in a regulated environment.

Cash flow is the ultimate measure of how your business is doing; it is a vital metric for investors when making an investment decision. In their life cycle, businesses often experience cash flow issues. Solid revenues, and a positive operational cash flow are key to business success and this is where Red Matter can provide a solution that leverages your assets into improved cash flow.

Drilling Down Into Your Cashflow & Finances

Your operating cash flow data is of primary interest to investors and lenders. There are other elements of your financial reporting that they drill down to get a solid view of your overall financial health. These areas include:

Working Capital- Working capital is the major difference between a company’s current assets (cash, accounts receivable, and inventory items) and liabilities (accounts payable and owned money). High WC provides the funds needed to continue trading, growing, and meeting the business's goals.

Depreciation- Your company's tangible assets will lose value over time, and depreciation gradually reduces that value. All this gives you a realistic view of their worth.

Amortization- The intangible assets like loans require regular repayments over time, which also factors your financial overview. Investors will generally hire a finance professional to review your accounts, business plan, and cash flow statement. For attracting the right investment, you need to learn and manage the cash flow. It is the foundational building block for managing your company's finances. Asset-backed securities are the solution!

Fundamental asset-backed securities. Typically, these assets are small groups of loans that cannot individually be sold to an investor. However, since these assets are packaged as a single financial instrument and diversified, investors have less risk exposure. Read on to learn more about how asset-based securities are a suitable investment for your asset mix.

Asset-Backed Securities (ABS)

Now assume that Company ABC makes automobile loans. If a person wants to borrow money, ABC gives a person the cash, and that person is obligated to repay the money with a certain amount of interest. At a certain point, company ABC may run out of cash. They can then package the current loans, sell them to Investment Firm XYZ and receive the cash to make more loans.

This is how individual investors purchase securities and receive the cash flow from underlying auto loans. Like bonds, each ABS has a rating that shows the degree of risk. In addition, each tranche has a collection of assets with data, such as maturity, interest rates, or delinquency rates. Once the institution has grouped loans, it will issue asset-backed securities.

Types of Asset-Backed Securities

Asset-based security (ABS) can be created from anything that generates income, from mobile home loans to utility bills. The most typical categories are:

Collateralized Debt Obligation- CDO is issued by a special purpose vehicle (SPV), a business entity created to give asset-backed securities. Collateralized loans and debt obligations comprise back loans. Finance-backed CDOs are underlying assets of ABS, real estate investment trust (REIT) debt, or residential mortgages. Collateralized mortgage obligations (CMOs) are composed of mortgage-backed securities. CDO is structured essentially, but some consider it a different type of investment. In fact, they own wider and more diverse assets, including asset-based security tokens.

Home Equity- Who doesn't know about them? Home equity loans are the largest category of ABS. Unfortunately, borrowers usually take out home equity loans with less stellar credit scores. This is one of the major reasons they don't qualify for a mortgage. An amortizing loan is a payment that satisfies a specific sum and comprises interest, principal, and prepayments.

And then there are Auto Loan ABS, Credit Card Receivables, and many more!!

What Are Asset-Backed Security Tokens?

While utility tokens can face issues with regulators, asset-backed security tokens are compliant. Increasingly we see that utility tokens are not suitable for rasing capital. However, regulated tokens backed by real world assets provide the means for businesses to access capital from not only crypto investors but traditional ones as well

Talking about the basic concept of an asset backed security token, they are backed by an asset with an existing economic value. However, utility tokens rely on the traditional “promise to pay” model, but asset-backed tokens hold the intrinsic value of that asset. For example, the US Dollar was once backed by gold through the Gold Standard. Similarly, a token can back several assets. The smart contract technology allows properties to be given to tokens and the creation of various token groups.

How Does Asset-Backed Security Token Works?

The assets are transferred and verified by a custodian who safeguards them. After that, the custodian codes these assets' ownership into security tokens. The token holders are considered the legal owners of the underlying asset, and they can exchange or divide them accordingly. On top of that, smart contract capabilities can be embedded by transforming the asset into an asset-backed security token. As a result, a token holder can automatically receive cash flow related to this asset.

Attributes of Asset-Backed Tokens

• Security- Using asset-backed security tokens to exchange assets is safer. The blockchain technology used in the trading of tokens settles the risk. This instant settlement and verification of transactions facilitate an easy investment process.
• Liquidity- Another big benefit of security assets is improving liquidity in any market. Having an asset-backed token means easy trading. This process lowers the barriers and penetrates markets, such as private equity investment. The increased trust in transactions will also increase cash flow along with liquidity.
• Divisibility- Ownership of an asset is traditionally very difficult to split. One cannot cut a company’s share, but they can split a security token backed by this share. This will help diminish costs associated with slicing assets.
• Low Cost- Can you get the same results with ETFs without having Security Token Offering (STO)? This is where asset back security tokens show their real potential. The securitization of any asset is easy and inexpensive. In addition, blockchain technology reduces the clearing and verification fees as well.

Summary

Investing in asset-backed securities are a good alternative to corporate bonds, costly venture capital or banks loans. From an investor's point of view, it’s a great way to diversify an investment portfolio and access new investment opportunities. Asset-backed security tokens definitely represent be a major disruption in finance.