Earlier this morning, I presented a breakout session at the Crypto ICO Summit in Zurich, Switzerland. The subject of my talk: The Future, Myths the Realities of security tokens. I covered a diverse set of areas from the current state of the security token market to infrastructure and protocol areas that need to be addressed in the near future. The slide deck is available below:
Some key points that might guide you through the deck:
· Some of the very marketed benefits of security tokens such as fractional ownership and liquidity are almost non-existing today.
· The chasm into mainstream adoption will be dictated by a transition from end-to-end solutions to specialized crypto-security protocols.
· There are important frictions in the current state of the security token market. For instance: regulation vs. decentralization or identity vs. anonymity
· The next phase of security tokens need to be a combination of better projects(tokens) as well as building the required infrastructure building blocks.
· New tokenization areas that can unlock the potential of the market in the near future are: tokenized debt, tokenized securities (bonds, derivatives, new forms of stable coins, and B2B issuances.
· New infrastructure building blocks for security tokens include areas such as: privacy, crypto-financial primitives, liquidity, disclosures, governance, etc.
· We might soon see 1–2 blockchains specialized on security tokens. Regardless of whether that’s a good idea or not.