"The great thing about tokens [is that] you can have payment and exchange of the actual asset online at the same time - it's T zero, basically instantaneous clearance,"
"So, maybe we'll have to even build in like a speed bump to make sure that we don't have any mistakes or wire money to the wrong place,"
"We will be working realistically for the next year or two to try to get where we have good guardrails around the system."
Tokenized securities on-chain can enable simultaneous payment and asset exchange, achieving T+0 instantaneous clearance. Implementing on-chain trading may require operational controls such as speed bumps and guardrails to prevent mistakes or misdirected transfers. Requiring identifying information for wallets that trade tokenized securities could extend KYC requirements into broader cryptocurrency wallets and affect Bitcoin users. If tokenized securities trade within traditional brokerages, existing KYC processes mitigate concerns; if they trade on decentralized venues, KYC implications become more consequential. Regulatory harmonization efforts are expected to focus on building protections and clarifying platforms and protocols over the next year or two.
Read at Bitcoin Magazine
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