Share these talks and lectures with your colleagues
Invite colleaguesPractice paper
Tokenisation: Assembling the building blocks of an institutional digital assets marketplace
Journal of Securities Operations & Custody,
13
(3),
218-236
(2021)
Abstract
The tokenisation of securities using distributed ledger technology (DLT) is blurring the traditional distinction found in the level of automation in capital market services in the public and private markets. In the last three years, security tokens have helped dozens of issuers and both individual and institutional investors based in dozens of countries manage their private securities in a compliant and fully digital way. We take a long-term view in that all assets will ultimately be tokenised and that this will reduce frictions in asset issuance, servicing and ownership transfers, and remove barriers to accessing capital markets and financial innovation. The authors are in a unique position to witness the transformation in the way business-to-business (B2B) consensus is established in traditional capital markets, as well as to be a pivotal part of the buildout of the nascent decentralised capital markets infrastructure. The authors share their thoughts based on the initiatives they have undertaken so far, in the hope that this invites thoughtful discussion from experienced industry participants.
Keywords: DLT; blockchain; security tokens; tokenisation; decentralised finance; reconciliation; consensus; private markets
The full article is available to subscribers to the journal.
Author's Biography
Carlos Domingo is a senior executive, entrepreneur, investor and currently the CEO and Co-Founder of Securitize, Inc. Prior to Securitize, Carlos founded SPiCE VC, the first truly liquid, inclusive and transparent tokenised VC on the blockchain. In addition, he has served as CEO of Telefonica R&D and CEO of New Business and Innovation at Telefonica Digital. He is also a published author. Securitize is modernising capital markets by enabling digital securities, making it easier for eligible investors to own, manage and trade digital securities within designated capital markets for equity, funds, fixed income and real estate. Securitize is the only Securities and Exchange Commission (SEC)- registered transfer agent integrated with multiple regulated US-based marketplaces with a working protocol and live issuers. The company also offers know your customer/anti-money laundering (KYC/AML) and capital management services. More information can be found at www.securitize.io.
Elizabeth Mathew has spent ten years in investment banking sales, trading and structuring and has spent the last few years focused on distributed ledger technology (DLT) adoption in Capital Markets. She began her career on the US rates derivatives sales desk at Lehman Brothers, advising and executing GSEs’ and mortgage originators’ derivative hedge strategies. In 2007, she moved to the Emerging Markets (EM) structuring solutions desk at JP Morgan, where she helped set up the Latin America (LatAm) structured rates offering. In 2008, she set up the LatAm cross-marketing and execution division in Asia Pacific (APAC) for JP Morgan. She was based in Singapore and ran the business for five years. In this role, she educated and advised real money clients on LatAm market dynamics, macroeconomic policies and trade strategies and oversaw the dominance of Japanese retail participation in LatAm markets in 2009–2013. In 2015, she switched focus to technology, advising FinTech and proptech startups. At Securitize since 2019, her focus is on enterprise DLT solutions product and market strategy. She is an engineering graduate from Mumbai University, MBA (Finance) from IIM Ahmedabad and MBA (Tech and Entrepreneurship) from Columbia Business School.
