In a livestreamed discussion with Blockstream CEO Adam Back on February 27, Bitfinex Chief Technical Officer Paolo Ardoino suggested that the Bitcoin sector should support the governments that support it. The executives were talking about tokenization of securities and Bitcoin.
The presenters all agreed that securities tokenization might have a significant effect on the financial industry. An effect could be increased user expectations. Banks frequently employ settlement and messaging technologies that are over 40 years old. According to Ardoino, there are issues with speed and compatibility. “Brings all the benefits of Bitcoin to everyone else,” tokenization meantime, claims.
According to Back, tokenization will lower expenses and open up the market to small enterprises. Exchange-traded funds (ETFs) backed by bitcoin will enhance estate planning and tax reporting. It might make Bitcoin accessible to a wider audience and inspire new developments like Bitcoin mortgages, which might make it possible for many people with non-traditional jobs to own homes.
As investors move their focus from “too many useless tokens,” in Ardoino’s words, to more dependable and predictable financial products like BTC ETFs, the cryptocurrency industry is expected to be affected as well.
According to Back, Blockstream Money Notes, which offer exposure to Bitcoin mining, mature this summer. Luxembourg law governs the securitization of the notes.
El Salvador and the Astana International Financial Centre (AIFC) economic zone in Kazakhstan both grant Bitfinex Securities licenses. Jesse Knutson, head of operations at Bitfinex, who facilitated the conversation, remarked, “Those two jurisdictions raise an eyebrow sometimes when I am speaking to investors or issuers.” It’s hardly the first place that comes to mind when one thinks of international financial markets.
Regretfully, I see a downward trend in London and, possibly, Frankfurt, as well as other global jurisdictions. […] They did that, and something happened in 2008,” Ardoino retorted.
“As the Bitcoin industry, we should acknowledge the jurisdictions that are leading the way in digital assets and tokenized securities and are putting more effort and faith in the industry.”
In 2021, Bitfinex Securities made its debut in the AIFC. At the end of January, it made its debut in El Salvador. In October, it released a bond on Blockstream’s Liquid Network priced in Tether (USDT), which was first greeted with a lackluster reception. The BTC layer 2 protocol is called the Liquid Network.
