June 30, 2023
The Winners Will Not Be the Players Who Stand Alone, But Those Who Collaborate
The Coinbase event in NYC last week and the Galaxy and GK8 event this week brought together amazing people. These digitally native firms are all over Tokenized Real World Assets. 2023 is the year of the Tokenized Security. I think those securities will largely be private market assets - Real World Assets individually or in a Fund. We continue to have an enormous number of people tinkering in this area, and we are starting to have more and more people and institutions commit to this area. What is being tokenized is the capital stack of the Asset, fundamentally the equity(share, unit, or interest), debt(note or bond), or structured financial product, ie an interval fund. The underlying thing being tokenized is a corporate/legal structure (limited partnership, LLC, C corp, etc). This allows the allows for the aggregation of liquidity across silos. The loser will be those who try to build walled gardens on DLT. The functions of banking and securities transactions are decentralizing. They are are starting with ‘banking micro-services’ which will be strung together and eat tradfi’s lunch.
As this develops the winners will not be the players who stand alone, but those who collaborate. I want to use Netflix as an example. In 2009 they moved from a monolith architecture to a micro-services architecture. They moved here very early before people were using micro services as a term.
In this move they transitioned away from a single code solution to a Services Oriented Architecture (SOA), and as Adrian Cockcroft described it, ‘Fine grained SOA.’ Today they have 2 billion+ pulls daily from a cloud native architecture that is continuously being deployed. (https://bit.ly/3PFGJV0). This was a move to decentralization. I have written about the ECN’s who collaborated won, and those who stood alone failed, this move to decentralization is here, it is in the architecture, it is the world we live in and it is in how we use data.
Netflix supported a new API structure that served 800+ device types, (it was easy to use on your phone) instead of telling devices to conform to their api structure. If you are building tokens that will only work on your platform, You will fail. Tokens have to function on multiple regulated exchanges or there is no network
GK8 Tokeny Oasis Pro Markets Swarm Network Swarm Polymath ADDX SDAX Archax Ownera Terazo Rialto Markets are delivering their piece of the eco-system with excellence. Deploying with market partners like J.P. Morgan, Goldman Sachs Invesco Ltd. Citi U.S. Bank that work in London, Singapore, UAE, India, and in the US. MUFG Investor Services Apex Group Ltd Socium Fund Services SS&C Technologies Aztec Group are implimenting this functionality for alts. Those who are building solutions that do not connect or have the ability to network will fail, that is not defi for regulated markets. The nodes of the network will be regulated. The services and micro services will be interoperable.