Projections put the size of the security token markets at US$8-9.5 trillion within just four years. That is bigger than the US$7 trillion invested in the privately managed asset markets that are presently seen at the most promising axis of growth for the tokenization industry. The rewards are easy to list. A lower cost of capital for issuers. Increased liquidity, and access to a wider range of asset classes, for investors. Automation of costly asset servicing by smart contracts. Faster completion of customer due diligence checks. Lower transaction costs, thanks to disintermediation. For the most part, security tokens fit comfortably within the existing securities market regulations in major financial markets. The technology to support issuance, secondary market trading and post-trade servicing is in place. Service providers, from trading platforms to custodians, are open for business. Yet the actual number of issues remains remarkably small and tightly concentrated in a handful of sectors and geographies. The sums raised have fallen far short of expectations. This webinar will seek to explain why an industry on the cusp of explosive growth is failing to detonate, and what it will take to make security tokenization happen.
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