Anyone in the Financial Industry should start getting ready for the big Finance disruption that's coming in the near future.
It was a no-op.
Have you ever purchased a bond? Ever wanted to sell one on the secondary market? Ever heard of the Securities Transfer Agents Medallion Program? You will if you try to trade bonds in the conventional way, which is a huge pain in the ass.
There is a lot of room for improvement by implementing the blockchain.
I mean, I hear you. I 100% get why people are interested. I just don't see why it has to be a blockchain vs a centralized database that DTCC controls access to.
Just transfer bonds into a new key pair. A costly hassle I am sure. Don't lose your key!
This is why there are so many lost bitcoins that are 100% unrecoverable.
Thanks for sharing what you could!
Because trendy buzz.
And that's a bunch of horsecrap. Do you buy stocks in your name too? No. Ordinary investors hold securities in street name with a brokerage.
I've bought corporates through Vanguard Brokerage Services, which actually doesn't have a great reputation for being friendly to buying individual securities. It's a click of the mouse and $2 per $1K face or half that if you have a large account. You can also call up the fixed income desk and do it over the phone. No problems.
Calling it a no-op is pretty naive, any significant step towards allowing bearer tokens of more tradition securities has enormous value, and each step towards it has value as well.
Be good for stocks too, which are a total and complete nightmare when it comes to who owns what.
Hell, with something like that the public might be able to viably reduce financial regulation -- or rather preventative procedural bureaucracy -- because of the ability to trace business transactional practices.
"Finders keepers losers weepers" is a playground rule.
2) Cost of financial instruments will be greatly reduced so companies will be more likely to do the work in house. The number of financial firms will be less therefore there will be less jobs in what is now the financial industry. New jobs expertise will be needed but current expertise are at risk. Middle men will be reduced. There will be a Google/Amazon type of player that will eat the industry world wide.
3)The cost of issuing debt will collapse so anyone involved in loans will be affected.
There are many other ways that Blockchain will impact the industry but these are the ones I can think of right now.
How long? Who knows. But it will be here faster than expected. For timeline, here's one to ponder. How has the cloud affected network admins in the last 10 years? The impact has been large yet it's only been a few years since it first started.