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July 11, 2023

Data Points Driving Digitization/Tokenization in the Private Markets

Pre-Ripple and Post-Ripple

Data Points Driving Digitization/Tokenization in the Private Markets

Three important data points in private markets that are a macro trend which will drive digitization/tokenization in the private markets.

1) Let's start with the Carl Icahn who was all over the news yesterday. He has a public company that has a bunch of assets that he is setting the marks on, I wrote about that here ( He needs third party marks with a decentralized data solution that uses the blockchain to commute trust in the underlying data, directly, or with zero knowledge proofs. This was back in the news and his stock is up 10% after he restructured his notes. The problem came when people ceased believing his marks on his assets, isn't this what happened to AIG, no one believed their marks, and then all the dominos fell ( Models, with out belief in the data going into them are worthless. Isnt this what DLT solves, commutes trust in a ledger, combined with zero knowledge proofs and multi party work flows, you can transform private markets...

2) This leads to the overweighting of Private Equity in the UK. This is good, Private Equity outperforms, why, longer term hold period, better decision making, and you buy it cheaper (the profit is in the purchase). The question is with all these new assets, do we think a GP set mark will work, in pension plans, forget about it. Look at what India and Australia have done with this, the same this is coming to the UK. We can either create the world's largest referencable data base in the middle or we can use a new data architecture, using data at the edge real time, and oracle to help price the market. This is a browser of time stamped data bases (this is Inveniam) This will be huge for companies like Cushman & Wakefield, S&P Global, and Houlihan Lokey who are already pricing these assets and folks like Refinitiv, an LSEG business and NYSE who are in this business but for derivatives of public assets who will get into this business, and lastly...

3) The All in Podcast is shilling my business. - look at minute 46 when Friedberg rightfully calls out the need for better marks on the books for illiquid assets as the collateral. This is the wave that will drive tokenization, better balance sheet treatment. Price Discovery is the killer app for DLT.

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