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Blockchain Technologists And Finance Veterans Collaborate To Bring Blockchain To Capital Market

• Bridging old-world and new-world finance is something that blockchain technology has aimed to achieve since bitcoin was first released in January 2009.

• Ten years later, this is coming to fruition as blockchain-based solutions designed to enable faster, more transparent, peer-to-peer financial transactions are coming to market.

 Rachel Wolfson Contributor

According to Sam Tabar, co-founder of Fluidity, in order for capital markets to evolve, industry veterans need to join forces with blockchain technologists to truly bring blockchain’s fundamental technology to today’s financial markets.  

“If you look at the industry landscape, to date there has not been a comprehensive platform built by blockchain technology professionals and structured finance veterans,” says Tabar.

In order to bridge this gap, Fluidity, a company that provides technology services to registered broker-dealers, issuers and financial institutions for tokenized securities, has joined forces with Propellr, an end-to-end solution for creating, managing, and servicing digitally held assets with an integrated FINRA-registered broker dealer.

Announced today, Propellr and Fluidity have created “Fluidity Factora,” a new, out-of-stealth company that takes complex financial assets, breaks them down into their basic factors, and encodes them to a blockchain. This enables standardization, transparency, and liquidity, making markets more efficient, while reducing the need for middlemen.

The company is unique because it was built by finance and blockchain technology professionals with extensive expertise in their respective fields. The joint team previously published the Two Token Waterfall whitepaper, a liquidity optimized framework for private placement securities.

Propellr is a team of structured finance experts that continues to create institutional grade deals. Factora and AirSwap are an excellent complement of independent platforms, and are uniquely positioned as a full-stack solution to tokenize and trade real-world assets,” says Michael Oved, co-founder of AirSwap. “We’re excited to help push the blockchain world into this forefront: using the fundamental technology of blockchain to revolutionize the industries that need it.”

Simply put, this team takes a new approach to blockchain, mainly by uniting it with structured finance.

Blockchain gives us a tremendous opportunity to make financial information standardized, normalized, and transparent across capital markets,” says Todd Lippiatt, Propellr’s founder and CEO, and co-founder of Fluidity Factora. “We are not trying to become capital raisers, but are focused on building technology with institutional partners in order to establish easily adoptable infrastructure. We’re thrilled to join forces with the minds behind Fluidity.”

Bringing Blockchain Technology With Traditional Capital Markets

In addition to the unique team behind Fluidity Factora, the company’s initial offerings are focused on tokenizing real estate assets. As regulated institutions increasingly move into the blockchain space, tokenizing digital assets is predicted to be a major trend for 2019.

“Tokenizing assets creates a clear, instant, and elegant solution, simplifying complicated industries. Smart contracts lower friction for investors and issuers, making everything replicable and scalable, all while enabling a fluid digital marketplace,” says venture capitalist Bill Tai.

Furthermore, tokenizing assets, such as real estate, could also help solve the problem of illiquidity.

“The private securities market is historically opaque and illiquid; it is on the investor to vet the quality of an investment vehicle, and once committed she/he holds it for the life of the investment. With Factora, incorporating blockchain technology presents the industry with an opportunity to take a significant step forward,” says Lippiatt.

Additionally, trade settlement and servicing are generally bespoke in nature. A blockchain-based solution helps standardize these constructs, ensuring confidence in symmetrical information and transparency.

“The infrastructure behind privately placed securities has barely evolved in 25 years, which is staggering for a constantly evolving market. This team is upgrading the infrastructure in accordance with best practices from both the blockchain and financial industries to create one cohesive framework,” says Donna Redel of the World Economic Forum.

Ultimately, blockchain technology could push forward an industry that has not evolved in a generation, finally creating a true bridge between traditional and new world finance.

Subject to regulatory approval, Propellr is becoming Fluidity Factora.

You can follow Rachel Wolfson on Twitter and LinkedIn to stay up to date on the latest cryptocurrency happenings.

Source: https://www.forbes.com/sites/rachelwolfson/2019/01/30/blockchain-technologists-and-finance-veterans-collaborate-to-bring-blockchain-to-capital-markets/#73234f9278ce

Tags: Bitcoin, blockchain, stocks, tsx, tsx-v