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Blockchain Technology

With tokenized systems on the blockchain, the capital market trading platform

can be streamlined (see Figure 13.5), provided that an automatic trade lifespan

where all parties in the transaction would have access to the exact same data about

a trade. This leads to extensive infrastructural cost reserves, effectively managing

data, quicker processing cycles, negligible settlement and the potential elimination

of brokers and mediators overall (see Figure 13.6). In the DeFi model of capital mar­

kets, the primary market where securities are created uses STOs, and the secondary

market where these securities are traded will use crypto-exchanges. The ownership

of shares and securities is tokenized and recorded by smart contracts for safekeeping

or trading.

FIGURE 13.4  Tokenizing different types of assets. (Author’s own.)

FIGURE 13.5  Conceptualization of a tokenized capital markets trading platform. (Author’s

own.)