26. The Next Wave of Security Token Applications
Tokenized Debt
Tokenized
Securities
B2B
Tokenization
27. Tokenized Debt
• Simple pricing model
• Benefits of a dividend
payment
• Protocols specialized in that
use case
28. Tokenization of
Securities
• Expand investor access to
existing securities
• Extend stablecoin model
• Leverage established pricing
and risk management
models
29. B2B Tokenization
• Leverage tokenization to
streamline bank-to-bank
trading of securitized
products
• Large volumes, manageable
risk
31. The Building Blocks of a Security Token
Platform
Security Tokens 2.0
Crypto-Financial
Primitives
Hybrid
Governance
Privacy
Liquidity
Protocols
Disclosures
Programmability
32. Crypto-Financial Primitives
• Enable equity, debt, and
hybrid protocols in security
token stacks
• Lay out the foundation for
security token derivatives
33. Hybrid, Programmable Governance
• Enable voting and governance
models using identity-based,
on-chain consensus
mechanisms
• Augment on-chain voting
models with off-chain
processes
34. Privacy
• Incorporate privacy protocols
as a first-class citizen in
security token models
• Model privacy regulatory rules
as part of security token
issuances/transfers
37. Programmability
• Extend security token
platforms with programmable
interfaces
• Provide programmable models
for third parties to build key
building blocks of security
token architectures: regulatory
rules, exchange integration,
etc.
38. Multi-Blockchain ST Runtimes
• Extend security token
platforms to non-Ethereum
blockchain runtimes
• Enable security tokens that
can be pegged across different
blockchains
40. The Case for a Security Token Blockchain
Smart
Contract
Limitations
• Smart contracts are a horrible way to
represent ownership
A new
consensus
model
• Consensus and incentives optimized for
security token models at the blockchain
level
Crypto-
Economics
• Align the economics of security tokens with
the crypto-economics of the network
Market
Players
Network
• Provide an environment for financial
market players to be integrated into a
security token network
41. The Case Against a Security Token Blockchain
Protocol
Landscape
• Ethereum includes a large set of crypto-
financial protocols relevant to security
tokens
Tier2 Model
• Security tokens can be considered a tier2,
instead of tier1, blockchain problem
Market Players
Influence
• A new blockchain for security tokens can be
subjected to manipulations by large market
players
Runtime
Fragmentation
• A new blockchain for security tokens can be
conducive to many blockchains for security
tokens
55. Summary
• Security token solutions today are too simplistic to have a big impact
in the market
• Crossing the chasm means transitioning from end-to-end platforms to
best of breed protocols
• The next wave of security token platforms will center on building
crypto-financial and compliance protocols
• We might see a new blockchain for security tokens