Member-only story
NFTs for Unique Security Tokens
This year, Non-Fungible Tokens (NFTs) were on the front page of most media publications, thanks to the wide adoption these tokens had in the crypto financial markets. NFTs have grown in popularity until becoming a mainstream investment, from their humble beginnings as a fringe hobby. Conservatively, most of the NFTs out there may not be a great investment product. However, the technology behind the uniqueness, non-fungibility logic implicit in these tokens, can be useful for the securities markets.
By 2025 the Security Token Market is expected to grow at 8 trillion dollars (KPMG, 2021). The increasing interest in tokenized assets, with a daily trading volume of more than 4 million dollars per day, depicts a strong and growing market. The financial services industry is adapting to Distributed Ledger Technology (DLTs) (HSBC, 2020). In fact, according to the World Economic Forum, more than 10% of the global GDP will be stored and transacted via DLTs as of 2027.
Security tokens are a digital representation of traditional tradable securities made accessible via Blockchain. They play an important role by providing transparency (records of ownership), increasing liquidity, real-time clearing and…
