Press Release (ePRNews.com) - NEW YORK - May 08, 2019 - A look at the upcoming future of Wall Street and global finance, a summarized briefing from CEO and Founder of RockTree LEX, Omer Ozden, drawing on his 30 years of legal and finance innovation experience and spanning two of the largest blockchain capital markets, North America and Asia. Full briefing available on RockTree LEX.
INTERNET: The “digital transfer of information and communication”
BLOCKCHAIN: The “digital transfer of value”
The internet completely revolutionized communications by upgrading society from paper-based methods of letter with stamp that were broadly adopted 130 years ago (which takes two to three weeks to deliver), to email broadly adopted 30 years ago (which takes a couple of minutes), to peer-to-peer (P2P) communication broadly adopted today (which is instant). Blockchain is upgrading the world of finance in the same way. And in the United States, this massive technological transformation is being called “Wall Street 2.0.”
All of the capital markets transactions institutional VC and PE fund managers have spent considerable time and frustration closing during their careers by using paper share certificates, manually signed paper agreements and manually updated share ledgers (that take several days or even weeks to close) can be efficiently and cheaply accomplished on the blockchain. Securities transactions, such as private investments, resale of securities/liquidity events and debt financings can be done today using P2P. Transactions can close instantly and cost-effectively on a 24/7 global basis through the digital representation of securities, also known as “security tokens” or “digital securities.” Over blockchain technology one’s investments can begin to trade within one to three years, significantly reducing the risk of liquidity events that are typically six to eight years away under the current paper model of securities. RockTree LEX believes that using paper certificates and manual ledgers for finance today is similar to writing a message to one’s parents by letter and stamp when we all know that SMS/Wechat/WhatsApp (P2P) technology is available. It is time to upgrade from this 130-year-old antiquated technology in finance that forces us to mindlessly shuffle paper and put our time into more productive endeavors!
LEX is committed to the development of blockchain and finance through legal compliance, and LEX believes that ‘Digital Securities’ are the next wave of disruptive blockchain application. Digital Securities allow for projects to conduct transactions in a legally compliant manner. And it is no longer a question of “if” all securities will eventually be represented digitally, it is only a question of “when.” It may take 20 years, or maybe 10. It may even occur in five years or sooner. Yet the economic impact, efficiencies and liquidity this will bring to the world of finance are staggering. It will make the earlier applications of blockchain through Bitcoin and ‘Utility Tokens’ (ERC20) look like tiny blips on a radar screen of a much large wave of financial innovation still yet to come. Yes, the transformation surrounding the internet’s digital transfer of information was big and valuable. But the transformation of transactions and finance through the blockchain’s digital transfer of value promises to be even bigger and more valuable. Welcome to Wall Street 2.0.
For a more in-depth analysis of the transformation of finance and transactions through digital securities and the coming of Wall Street 2.0, read the RockTree LEX briefing on www.rocktreecapital.com.
Kevin O’Brien, VP RockTree LEX, +1 347-426-7934 or firstname.lastname@example.org