The Essence of Securitization
Securitization, by definition, is the conversion of illiquid assets in their fundamental type into tradable stocks which are backed by a pool of standardized resources of one type. The procedure converts assets with reduced liquidity to more liquid safety instruments which may be traded either on the commercial markets as well as over-the-counter.
While great in theory, securitization is no more workable inside the evolved market atmosphere. Today’s marketplace is quickly and demanding, although conventional securitization is a gradual, protracted procedure. It may take as much as a year to the securitization of an advantage to get to the stage when fresh securities are in fact bought. Bureaucratic red tape, reams of paperwork, a top installation cost, and also the high number of stakeholders included all contribute to this arduousness and inefficiency of the intricate fiscal instrument, which makes it nearly impossible to estimate first strength functionality.
In the modern digital age, such procedures will need to occur much faster to be able to stay competitive. Artificial intelligence, blockchain engineering, IoT, and tokenization will be the organic remedies.
Tokenization – The Next Generation
Tokenization by its own character is another generation of securitization. It’s the process which transforms rights to an advantage into electronic form — that the so-called ‘token’ — about the blockchain. Employing blockchain technology solves all of the problems inherent in conventional securitization.
Employing blockchain to tokenize an advantage:
- creates a single, standardized source of information instead of multiple data silos across different entities, making the process easier, cheaper and faster;
- makes security prices reflect true value;
- provides a tracking system that enables easy auditing during every stage of the tokenized asset’s life cycle
Tokenization is a natural, if not inescapable, substitute for securitization because it attracts greater significance to all stakeholders in the monetary industry.
BANKEX and the Proof-of-Asset Protocol – A New Word in the Financial Market
Standing on the border of this blockchain age, BANKEX supplies tokenization solutions for traditionally illiquid assets. The BANKEX system is an ecosystem which combines Bank-as-a-Service and FinTech technology. Its proprietary Proof-of-Asset protocol empowers liquidity in the very best way possible. BANKEX requires an advantage — it may be practically anything from any area — digitizes it, validates all the essential info, tokenizes it with the Proof-of-Asset protocol, also ensures that it’s set in the marketplace for additional trading. Powered by blockchain, this technology uses Smart Contracts that function as a reliable tool to create deals of almost any sophistication.
Though the idea might appear far-fetched to a BANKEX has already received assistance from 10 banks and among the very recognizable technological giants — Microsoft Corporation.
BANKEX is helping a variety of markets adapt to quick changes by offering a dependable and transparent technology and its own Proof-of-Asset protocol is tripping heated conversations within the crypto community. In addition, the Demo is already live. Now BANKEX is prepared to establish its token sale phase.
BANKEX token sale launching date will be announced shortly. Do not forget to register to your pre-sale whitelist.
To learn more about BANKEX please see their official site and download the job whitepaper. You can also join with BANKEX on Facebook, Twitter, Telegram, and Slack.