Tokenized securities are private securities that comply with securities laws using Reg D, specifically Rule 506(c). In some cases they are Reg A+ (that come with JOBS act provisions used for crowdfunding). They are very important for the ecosystem for two reasons:
1) because ICOs are very important way of fundraising and they need to become compliant
2) they make illiquid assets like private real estate RIETs more liquid
Since KYC/AML is enforced and investor accreditation is key to buying these securities, this will reduce scam and legitimize ICOs and security tokens overall.
I can’t wait to see all the interesting possibilities with making illiquid assets more liquid using tokens to represent shares. This is an exciting development. Congrats to Coinbase.
1) because ICOs are very important way of fundraising and they need to become compliant
2) they make illiquid assets like private real estate RIETs more liquid
Since KYC/AML is enforced and investor accreditation is key to buying these securities, this will reduce scam and legitimize ICOs and security tokens overall.
I can’t wait to see all the interesting possibilities with making illiquid assets more liquid using tokens to represent shares. This is an exciting development. Congrats to Coinbase.