Understanding Tokenised Securities
Bitfinex Securities is revolutionising the investment landscape by introducing tokenised securities, a digital asset class that combines the reliability of traditional investment tools with the efficiency and flexibility of digital assets. Tokenised securities represent traditional securities like stocks, bonds, and derivatives but with enhanced features such as instant settlement, global accessibility, and increased transparency.
Securities in Traditional Finance
Traditional securities include shares, debentures, warrants, and structured products. These assets are crucial for businesses to raise capital through primary markets like initial public offerings (IPOs). In secondary markets, securities are traded between investors, providing liquidity. Equity securities, like shares, confer company ownership to holders and can fluctuate based on market conditions and company performance. Debt securities like debentures represent loans made by investors to issuers, offering regular income through interest payments and principal security.
Tokenised Securities Vs Traditional Securities
Traditional securities are usually traded on centralised exchanges and are mediated by several intermediaries, which can introduce delays and increase transaction costs. Tokenised securities, however, leverage digital asset infrastructure to create and issue securities in the form of tokens that can be traded on a distributed ledger. This allows for peer-to-peer transactions that can settle almost instantly and reduces the need for intermediaries. Tokenised securities also democratise access to capital markets by fractionalising assets into smaller denominations through tokens, lowering the minimum investment thresholds and providing a truly international market reach and diversification.
The Future of Securities Markets
Bitfinex Securities is leading the transformation of the global financial markets by pioneering the digitisation of legacy securities through its digital securities trading platform. It has initiated several key tokenised securities offerings, providing issuers with a regulated, efficient, and global avenue for capital raising. Bitfinex Securities has chosen the Liquid Network as its technological platform for the issuance of tokenised securities, leveraging the inherent security features, reliability, and liquidity of the Bitcoin network. By integrating traditional financial mechanisms with blockchain technology, Bitfinex Securities is not only changing how securities are issued and traded but also enhancing the efficiency, transparency, and accessibility of global capital markets.
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