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mand1575HNSource author
Lessons learnedExperience excerpt · English

Given that we are now entering another crypto hype cycle and blockchain technology, discussions …

Given that we are now entering another crypto hype cycle and blockchain technology, discussions often veer towards crypto and the allure of embedded tokens. I’m going to stick to the realty and opportunity: utilizing blockchain in fixed income finance. Having spent two decades navigating the complexities of Wall Street, I know the critical problem plaguing the fixed income market: the overwhelming amount of data generated during the origination of debt instruments and the subsequent challenges in reconciliation during clearing and settlement. Night cycles, calling Bloomberg to fix security master. Calling DTCC to settle trades. Blockchain is the best technology to solve this. Only if applied correctly. Otherwise, it’s a waste. We started with a fundamental goal: to debunk the myths and misconceptions surrounding blockchain in the securities space. Despite the pervasive FUD propagated by the media, we have now proved to regulators that securities originated on blockchain are indeed securities – not merely speculative digital assets. …

Original discussionEthereum has blobs. Where do we go from here?489 source comments · at import
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YI
yieldcrvHN

a better question is to look at how people use it, the frictions they encounter, and who works on solving those frictions just saying “speculation” as if thats not a use case misses that “financial services” are our biggest industry on the planet and thats mirrored in the blockchain space, many people solve frictions and compete with each other. it willfully ignores that all currencies are 99% held as stores of value and the M0 money supply is a tiny fraction used as cash and for merchant transactions, a distribution also mirrored in the blockchain space but ignorantly used to discredit it despite ironically showing how well it works as a parallel economy. additionally due to the structure of blockchains as a pay to write database, most use cases that aren't related to stores of value or trading are intrinsically tied to something financial which makes the standard impossible

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troupoHN

> the root cause of friction in fixed income trading: the lack of direct origination and data quality across market participants. By leveraging a permissioned network, Blockchain has nothing to do with "data quality across market participants". Bad data entered into blockchain remains bad data.

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pa7x1HN

In case you are curious BlackRock launched last week a money market fund on Ethereum. You can see it onchain here: https://etherscan.io/token/0x7712c34205737192402172409a8f7cc... And here the press release: https://securitize.io/learn/press/blackrock-launches-first-t...

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yieldcrvHN

Great, yeah are you going to move off the permissions blockchain to just permissioned smart contracts on a public blockchain? Capital formation has been occurring this way for at least 12 years on public blockchains. Satoshidice was one of the first companies and its shareholders created a vibrant secondary market onchain. They did dividends daily and it always went out to every shareholder daily. What happens now is so much more advanced but even more frictionless for crypto native issuers and traders. One day DTCC and FINRA and the Fed will conform it to their redundant processes so that registered securities can do the same, using the same public utilities as everyone else.

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