Brickin co-founder Edwin Mata spoke about the growth of security token offerings (STOs) and the tokenization of securities in an interview with investment media. Mata said the concept of tokenization has been slow to take shape since 2016 due to regulatory confusion, but clarified that companies can still comply with existing regulations. Mata also discussed how Brickin is simplifying STO creation by providing a technology dashboard with user-friendly steps, and the benefits of tokenizing securities, including liquidity and cost-effectiveness. He added that the next challenge for STOs is trading, which will require more regulatory clarity and structure.
—
Introduction
Ashton Addison from Block West Capital interviews Edwin Mata, co-founder of Brickin on the CryptoCoin Show. They discuss the topic of security token offerings (STOs) and the tokenization of securities.
The Current Landscape of STOs and Tokenization of Securities
Edwin mentions that the regulatory bodies were initially fearful of blockchain being used to transact securities, but comprehension has grown within the last 5 years. Companies need not comply with new regulations, they just need to comply with existing regulations, which includes understanding that a token is just a mere representation of the security. As long as companies comply with current regulations, they don’t need to rewrite the whole system.
Tokenizing and Bringing Companies on Chain
Edwin discusses the importance of making the user experience as seamless as possible. Bringing a company on chain involves deploying tokens, but the user experience must be such that even non-technical users can accomplish this themselves. Thus, they have developed a dashboard that simplifies the process. They provide the best user experience, while reinforcing the fact that what the companies are doing is legal.
Trading of Securities on Regulated Exchanges
Edwin mentions that after tokenization, it is hard to determine which jurisdiction or who is buying the tokens since it is available on the public market. However, in the traditional finance world, securities are traded on regulated exchanges such as Nasdaq. There is no clear answer on how this would work, as it is not necessarily part of Brickin’s offering.
Conclusion
Overall, Edwin is positive about the prospects of STOs and the tokenization of securities. By making it accessible and seamless, companies can gain the many benefits of being on the blockchain. The regulation has evolved, and it may be unnecessary to introduce new ones. Making the experience as user-friendly as possible is key, and Edwin encourages companies to leverage the technology that Brickin provides to do this on their own.
