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ConsenSys Proposes Tokenization to Leverage Impure Public Goods

Naturally occurring public goods (e.g., water, forests, beaches) are often thought of as “free” public utilities—we do not expect to be “charged” for their use. People also tend to think of these public goods as virtually unlimited and we therefore rarely concern ourselves with the limited supply or providing equitable access and fair allocation of the public goods.A recent white paper published by ConsenSys reimagines the equitable allocation of public goods through blockchain and tokenization. The paper further seeks to introduce a new, fair method of tokenizing ‘impure’ public goods that carry some level of scarcity.Public Attitudes

People generally understand that human-made public goods—highways, airports, libraries—will incur some economic costs which must be recovered through some sort of fee, toll or charge. It is apparent, however, that the general public gives little thought to the actual policy decisions made in cost recovery schemes or the impact of cost recovery methodologies on the efficient allocation and utilization of these resources for the assets.Pure VS Impure Public GoodsEconomists sort public goods into two baskets—

1. “Pure” Public Goods—individuals can consume this type of good with without hindering the opportunity or access to that public good for others.

2. “Impure” Public Goods—consumption by one individual negatively impacts the ability of others to consume (scarcity) or excludes other individuals to some extent (excludability).

Public Goods Fee Structure Limitations

According to the paper, the support of impure public goods can create a separation of thought. People recognize that these resources are finite and must be maintained, but are still quite unwilling to accept charges for them. Parks, beaches and city infrastructure need to be maintained and not everyone can access them simultaneously and there are limitations on how available resources are allocated and costs are recovered. This makes the true values of impure goods and their optimal potential usage difficult to determine.

When a public body or government sets fees or tolls to maintain public goods, they tend to be flat amount that do not reflect the complex dynamics of the supply and demand equation. Furthermore, until recently, we have lacked the technological means to fully address the cost allocation issues of public goods at scale. Congestion Pricing Congestion pricing is a way of dealing with scarcity and excludability by adding a surcharge for services that are subject to temporary or cyclic increases in demand. Companies that engage in excess pricing are trying to regulate excess demand by applying higher prices during peak demand cycles. Congestion pricing would be a net new allocation structure in most cities. It may be applied to the existing infrastructures for which inhabitants are already paying and would not be expected to be conflated with other city services on both the cost and revenue side.Can revised pricing structures lead to better, more efficient, and safer usage of impure public goods? Consensys considers if markets for enumerable but finite usage rights for a wide variety of freely exchangeable “impure” public goods can be created using blockchain technology and “tokens.”

Proposed Token Model, Distribution and UsageIn the white paper, Consensys proposes a straightforward market-based congestion pricing model.Every resident of a city is issued a finite number of digital access tokens for the congested public area free of charge. For example—one access token per day for a year.

1. The tokens are valid for an agreed period (say, one year), and new tokens are issued periodically to eligible citizens.

2. Every driver of a vehicle needs to pay (i.e., transfer to the municipality), say one token, upon entering the congestion zone of the city during certain hours of the day. The access right of the token expires once the driver and vehicle leave the congestion zone.

3. Tokens are destroyed once used.

4. Drivers of vehicles can buy one or more tokens in an open marketplace.

5. Token prices are set in the marketplace based on supply and demand.

6. Algorithmic tools could be developed to allow travelers needing access but without tokens to simplify purchases by pre-setting parameters to various preferences.

7. The token can only be used to access the city’s congestion zone and nothing else.

Source: Blockchain in Public Goods Allocation – ConsenSys Solutions White PaperThe current flat pricing structures of impure public goods leads to inefficient economic outcomes. Implementing market-driven pricing and exchange structures as described in detail for congestion pricing could see numerous benefits.

For a more detailed and comprehensive overview of how tokenization can enhance fair access and opportunity for public utility, check out the full white paper.

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Algorand's Blockchain Based COVID-19 Global Survey Shares Real-Time Public Pandemic Data

Algorand, the first pure proof-of-stake (POS) blockchain created by cryptography pioneer and Turing award winner Silvio Micali, has launched a global Coronavirus (Covid-19) survey.

The company published a blog post on March 27 announcing its ‘IReportCovid’ survey app. The aim of the survey is to compile a public database to share information on the spread, status, and symptoms of the COVID-19 pandemic and give updates in “real-time.”

Global Blockchain database to fight COVID-19

According to Algorand, there is limited data coming directly from the general public about how COVID-19 is affecting them in real time, which could be useful data for studies on the pandemic as well as for public knowledge.

The survey is not invasive and asks for basic information that one would usually find on a doctor’s appointment card, such as age and gender, with the added a section to confirm if the respondent has been exposed, treated or tested for the coronavirus and their isolation status.

As the responses will be publicly posted on the Algorand blockchain, the information shared cannot be changed or tampered with, only updated by respondents if their situation changes. Algorand is encouraging everyone to take part in the survey, “even if you do not have symptoms and update when changes happen.”

Dr Tal Rabin, Head of Research, Algorand said that the IReport-Covid distinguishes itself from other applications and sources of information on coronavirus through “the combination of anonymous self-reporting and the constant retention of information on the blockchain.” She added, “Very little information is coming directly from the people in the community. I hope more people in the world will respond to the questionnaires in our app so that we can gather meaningful information.

After publishing aggregate statistics in the near future, Algorand plans to introduce tools for the community to build applications leveraging the collected data.

Algorand – First Blockchain to Defeat Trilemma

The blockchain trilemma was a term given to the pain points of trying to establish seamless transactions while maintaining all three critical properties—decentralization, security and scalability—which was originally believed to be impossible.

In an interview with Blockchain.News, Jing Chen, Chief Scientist of Algorand discussed how Algorand has solved the blockchain trilemma with its Byzantine agreement which would make it the first known platform to have all three critical properties optimised.

Chen said, “The alleged ‘trilemma’ says that among three important properties – decentralization, scalability and security, a public blockchain can hope to achieve just two of them, at most. This is not a mathematically-proven impossibility. Rather, it is used to emphasize the difficulty of achieving all three simultaneously. We believe it’s important for a public chain to achieve all three, and the Algorand blockchain does just that.”

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Fed Chair Powell Asserts Money Supply is for Central Banks not Private Sector

Federal Reserve Chairman Jerome Powell asserted that the private sector has no place in money issuance, and by extension the development of a Central Bank Digital Currency (CBDC).

The House Committee on Financial Services met again yesterday, and an interesting exchange took place between Fed Chairman Jerome Powell and Representative Tom Emmer (R-MN) over whether CBDC should be developed in a private-public partnership.

In the hearing on June 17, as the topic turned to CBDC, Chairman Powell made his feelings clear that he did not view the private sector as having any place in money issuance.

Where is the Digital Dollar?

In a previous open hearing by the House Committee On Financial services the Honorable Christopher Giancarlo once again advocated for the use of a Central Bank Digital Currency (CBDC) as an effective means of stimulus distribution and added that China is gaining a lot of ground in this regard.

But how far off is a United States CBDC or digital dollar? That was the question posed by Representative Emmer, a ranking member of the Fintech Task Force, to the Fed Chairman as he questioned, “What substantive recent actions has the Fed taken to understand and experiment with this technology?”

While Powell responded to the inquiry, his answer was very vague and diplomatic. He simply said that the US Government has an obligation to the public to keep them up to speed with innovation. He added, “If this (CBDC) is something that is going to be good for the United States economy and for the world’s reserve currency, which is the dollar, then we need to be there and we need to understand it first and best.”

No Place for the Private Sector in Money Supply

Later in the hearing, Powell also responded to the initiatives of the Digital Dollar Project, which is headed up by former CFTC Chairman Giancarlo—who has expressed a need for the digital dollar or a CBDC to be developed through a private-public partnership.

Powell clearly expressed that neither he nor the Federal Reserve were interested in such a collaboration. He said, “The private sector is not involved in creating the money supply. That’s something that the central bank does.” He added, “I don’t really think the public would welcome the idea that private employees who are not accountable solely to the public good would be responsible for something this important.”

It is unclear what accountability Powell refers to, as the US government continues to print money from thin air with seemingly little thought for the consequences on the dollar’s value and the incoming inflation that will be felt globally.

Protecting the Dollar

The response of Chairman Powell regarding the private sector being involved in money issuance should come as no surprise as the US Government has, throughout their history, gone to extreme measures to retain control of the defacto global currency in the US Dollar.

The inception of cryptocurrencies like Bitcoin, which, was essentially built to potentially destabilize and displace the central source of power for our governments—their control over traditional financial systems and monetary issuance—has been a growing concern to the United States.

US authorities and regulators have famously hammered Facebook’s Libra project into submission as a token supported by two billion users was again too much of a threat to their monetary control. US regulators also clearly encroached on the rights of other sovereign nations when they banned the distribution of Grams and the launch of the TON, not just in the US but globally.

President Trump has been incredibly outspoken on the subject of Bitcoin and also believed Facebook’s Libra to have little standing or dependability. Last year he was quoted saying, “We have only one real currency in the USA. It is by far the most dominant currency anywhere in the world, and it will always stay that way. It is called the United States Dollar!”

Coinbase Going Public Might Not Benefit Cryptocurrency Market After All

Coinbase has allegedly started moving towards a stock market listing that could reportedly occur as early as this year, making it the first major US cryptocurrency exchange to go public—but would that necessarily enhance exposure for mainstream investors to the crypto market?

The rumored plan for Coinbase Inc’s upcoming stock market listing was reported by Reuters last week along with the news of an investor day. The story has been almost impossible to avoid on Twitter and crypto news sites, and speculation is rampant on what effects the $8 billion US exchange’s listing will have on the cryptocurrency industry as a whole.

As announced Coinbase is aiming for a direct listing that allows the immediate sale of the investors’ holdings with no cooling off period. With a direct listing, Coinbase would not need to sell new shares as it would if an IPO was chosen. Existing investors do not have lock-up restrictions on when they can sell their holdings after the listing.

No doubt, should Coinbase be successfully listed, it will be the first major cryptocurrency exchange to go public and that would in itself be a major development for the crypto-sphere, but unfortunately, it may not necessarily mean the greater cryptocurrency exposure for mainstream investors that many are expecting. Coinbase Direct listing

As mentioned, Coinbase has chosen a direct listing approach hoping to avoid the extraordinary effort and investment in time and resources it takes to execute an IPO, which many venture capitalists believe are no longer worth the effort.

The use of a direct listing also allows Coinbase to avoid the perception of any deals being made under the table with underwriters or bookrunners—but still requires the approval of the US Securities and Exchange Commission (SEC).

A direct listing still requires SEC approval and Coinbase will have to subject themselves to initial and ongoing disclosures of financial, tax and other information. Also expenditures on accounting, legal, compliance, and marketing. This should not really be an issue for Coinbase as it sustains a high flow of fiat capital and boasts a user base of 35 million.

How will it Boost the Crypto-Sector?

Before discussing why the listing may not be the catalyst for mass crypto adoption that many are anticipating, let us go over the obvious reasons why the listing is a big deal.

Firstly, a stock market listing of Coinbase would bring a lot of mainstream investor attention to the cryptocurrency industry as a whole and focus mainstream financial analysts on the still overlooked and misunderstood sector.

A second major benefit is that the listing would allow the public to access the inner workings and to gain insight into one of the largest players in the crypto game.

The last main factor that may boost the crypto industry is that the listing will provide mainstream investors a safer and more regulated inroad to the crypto sector. The boost to mainstream attention for cryptocurrencies and digital assets could trigger a wave of new investment, and spur further innovation for established financial markets and services.

But…

Due to the choice of direct listing as opposed to an initial public offering (IPO), the move could simply provide the initial investors of Coinbase with an attractive exit strategy—which may eventually still benefit and foster continued growth of the exchange as it would also set up a pipeline for further financing. Regardless of the long term positive effects, if the initial investors exited on mass as the company goes public—it would create suspicion among new investors.

Most importantly, a public listing of a company like Coinbase which is valued at $8 billion would most likely see direct investment go into the business rather than boost actual mainstream cryptocurrency exposure. While this may encourage and facilitate crypto adoption and investment down the line, the effects would not be felt immediately and there is little to suggest that it would be the logical next step to the listing.

In the most severe case, Coinbase may damage its own business through the listing, as mainstream investors would seek to buy shares in the US exchange rather than choose to buy cryptocurrency directly.

Despite the potential negative outcomes, it is difficult to argue that the listing of Coinbase, or potentially any other giant of the cryptocurrency industry would be anything other than a positive indication for cryptocurrency, but it may not be the catalyst for investment and adoption that many are expecting.

European Central Bank is Consulting the Public on CBDC

The European Central Bank is keen on its drive towards a Central Bank Digital Currency (CBDC) and launched a public consultation yesterday, seeking public opinion on the proposed Digital Euro.

According to the European Central Bank (ECB), the proposed digital euro is different from a “crypto-asset” and all implications of issuing the CBDC must be adequately considered. The public consultation officially launched on Oct. 12.

The European Central Bank has undoubtedly been making crucial moves towards the issuance of a Digital Euro in the past days. “A digital euro could support the Eurosystem’s objectives by providing citizens with access to a safe form of money in the fast-changing digital world. This would support Europe’s drive towards continued innovation,” the ECB said in an earlier report in which it assessed the potential of issuing the digital euro, “It would also contribute to its strategic autonomy by providing an alternative to foreign payment providers for fast and efficient payments in Europe and beyond.”

From the foregoing, the ECB’s current plan for the public consultation involves devising ways to ensure that the proposed Digital Euro will be ‘risk-free’ like banknotes and coins. According to the report, the ECB beginning on October 12 will start a three-month public consultation and a series of experiments that will span over six months.

No Timeline Yet Set For The Issuance

Despite the ECB’s growing impetus towards achieving a Digital Euro, the apex bank has not released any timeline to guide the process of the development and subsequent issuance. The resurgence in the ECB’s plan was partly due to the acknowledgment that the coronavirus pandemic has accelerated digital currency adoption.

In a bid to consolidate the traction the ECB is gaining in line with its CBDC project, about six European Nations have formed a working group to further assess central bank digital currencies. In all, the ECB’s overall aim is to launch the digital Euro in time to unleash the global power of the Euro.

Public Companies Now Hold Almost $7 Billion Worth Of Bitcoin

At the time of writing, there is almost $7 billion of Bitcoin currently held by 13 publicly listed companies. Companies including Grayscale, Galaxy Digital, Microstrategy, and Square, are among the largest holders of cryptocurrency, as businesses react to a change in sentiment towards Bitcoin and other cryptocurrencies.

Several high profile influential figures that have previously cast doubt upon cryptocurrency are now also changing their tune, as blockchain technology becomes an undeniable force for innovation.

Gold has historically been the go-to as a hedge against economic uncertainty, but the rise in adoption of Bitcoin has grown exponentially throughout the last decade, drawing the attention of some of the biggest names in tech.

Jack Dorsey, CEO of Twitter and payments processing service Square, publicly tweeted that Square had invested $50 million of the company’s holdings into Bitcoin, along with details of how other publicly traded companies could do it too.

Grayscale has been stacking huge amounts of Bitcoin on behalf of clients over the past year, with a total of 449,596 BTC under management in its BTC trust.

Software giant Microstrategy currently holds 38,250 BTC, the second-largest holding of cryptocurrency than any publicly traded investor, other than Grayscale. The holdings also mean that an array of shareholders are also indirectly exposed to cryptocurrency as Bitcoin makes the company’s balance sheet.

Interestingly, the government of Norway holds a 2% stake in Microstrategy, meaning that all Norwegians are now also exposed to Bitcoin indirectly.

Investments by the publicly traded companies on this list are proving to be a catalyst for the demand of Bitcoin on an enterprise level, and we can expect to see this list keep growing.

OKG Holdings Says OKEx Founder Investigation Won't Impact Business, OKB Price Plunges Further

As OKEx founder Mingxing ‘Star’ Xu remains under investigation following the suspension of the exchange’s withdrawal service, OKG Technology Holdings Limited has told its shareholders that business operations won’t be affected—even though Xu is a controlling shareholder of the publicly listed company. Despite Xu being under investigation by Chinese authorities and a controlling shareholder in OKG Holdings (Stock Code: 1499), the company announced that they expect the investigation into the OKEx founder to have little effect on its business operations or that of its subsidiaries.

OKEx Suspension and Founder Investigation

Last week, leading Asian cryptocurrency exchange OKEx caused panic in the crypto markets after suddenly suspending its withdrawals to cooperate with an investigation.

The suspension of services immediately stirred a reaction in the Bitcoin (BTC) price which plunged 3% while OKB took a 15% hit on the day.

According to the first announcement by the major crypto exchange on Oct. 16, OKEx had suspended all cryptocurrency withdrawals as one of its private key holders was cooperating with a public security firm in regard to an ongoing “investigation.”

Soon after on the same day, it was reported by Caixin news, that the private key holder under investigation was OKEx founder Mingxing ‘Star’ Xu.

Xu had allegedly been taken into custody by police following the major crypto exchanges sudden suspension of its withdrawals as one of its private key holders was said to have been cooperating with a public security firm in regard to an ongoing “investigation”, according to two other sources close to OKEx.

According to the OKG Holdings announcement on Oct.18, the board of directors of the company was notified by the legal counsel acting for OKC Holdings Corporation on 16 October 2020 that Mr. Xu Mingxing is presently under an investigation by public security authority in the People’s Republic of China (PRC). OKG Technology has not yet been able to contact Mr. Xu to confirm the information.

Per the announcement:

“Mr. Xu is a non-executive Director of the Company and also the controlling shareholder of the Company (OKG) through his interests in OKC. As of the date of this announcement, OKC holds 3,904,925,001 shares of the Company, representing 72.60% of the total issued share capital of the Company.”

The OKG technology said that to the best of their knowledge the board is not subject to any ongoing government investigation in the PRC. The announcement also highlighted that they expect that the investigation with Mr. Xu will not have any material effect on the business operations or financial position of the OKG and its subsidiaries.

BTC Price Recover, OKB continues Plunge

As reported, following the suspension of services on Oct.16 at OKEx, the BTC price fell around 3%, but has now recovered from the scare and is currently valued at $11,467.35 at the time of writing. The OKEx token (OKB) however has continued to fall. Prior to the OKEx suspension of withdrawals, the OKB price was around $5.88, it then plunged 35% before making a slight recovery. At the time of writing OKB, token price sits at $4.71 around 20% lower than Oct. 16.

Bank of Japan Wants to Hear From Public About Digital Yen Development

Kazushige Kamiyama, the head of the Bank of Japan (BOJ)’s payment and settlement systems department, announced that for the anticipated national digital currency to become a reality, it must be supported by the public.

Kamiyama stated:

“There is no conclusion yet. At the end of the day, there’s no way we can proceed without gaining sufficient understanding from the Japanese public.”

Kamiyama said that for Japan’s Central Bank to launch a Digital Yen, it needs to ensure that that the central bank digital currency (CBDC) can complement physical cash and other types of electronic payments systems. In addition, CBDC also needs to strengthen the transactions ecosystem for commercial banks and other financial companies, without just serving as a tool that the BOJ uses to achieve its monetary policies.

Kamiyama mentioned:

“We have clearly stated that banknotes and digital currency will coexist. The digital currency won’t be useful to deepen negative rates because there will be banknotes to which the rates can’t be applied.”

Japan and China Rushing to Issue CBDCs

The recent announcement by Kamiyama comes at a time when Japanese lawmakers have been pushing the government to launch its own digital yen. The urge for the country to develop its own CBDC comes as a result of China’s digital currency electronic payment (DCEP) development. The news of the potential launch of China’s DCEP has pushed Japan to realize the benefits and significance of a potential central bank digital currency issuance.

The BOJ said that to keep up with technology, it would collaborate with private sectors and the government to further research on digital currency. Japan’s Central Bank aims to modernize and upgrade the financial industry to cope with changing global financial development.

China has been ahead of other major countries in experimenting on a CBDC as it focuses on becoming the first nation to launch a digital currency to reduce its dependence on the world’s main reserve currency (the U.S dollar payment system). Early this month, the People’s Bank of China (PBoC) announced that it has processed more than 3 million transactions worth 1.1 billion yuan ($162 million) as part of its trial DCEP initiative.

While China seems to take the lead towards launching its DCEP, other major economies across the globe are examining the possibility of issuing their own CBDCs.

Do Europeans Want a Decentralized Digital Euro? Asks ECB Survey

Do Europeans want a decentralized digital euro that does not rely on the central bank or a trusted central intermediary?

The European Central Bank is asking for public opinion with a new survey on the potential and public sentiment of a decentralized digital euro.

On Nov 1, Christine Lagarde, the President of the European Central Bank (ECB) launched a public consultation survey to gather citizen’s thoughts and feedback on the potential of a digital euro.

In a Tweet, ECB President Lagarde posted a link to the survey and said:

“We’ve started exploring the possibility of launching a digital euro. As Europeans are increasingly turning to digital in the ways they spend, save and invest, we should be prepared to issue a digital euro, if needed. I’m also keen to hear your views on it.”

The ECB President’s tweeted survey asks respondents to rank their preferences for a digital euro including what the public would expect for a CBDC in terms of services, functionalities and use cases.

In a follow-up Tweet, Lagarde posted a video and highlighted that through the survey:

“Europeans can actually express their preference and tell us whether they would be happy to use a digital euro just in the way they use a euro coin or a euro banknote, knowing that it is central bank money that is available and that they can rely upon.”

Centralized or Decentralized

The Euro Central Bank’s public consultation survey asks European’s to rank their preference for the digital euro to be decentralized or controlled by the Central bank.

The survey outlines that there are two approaches that can be taken to make a digital euro work—”one that requires intermediaries to process the payment and one that doesn’t.”

In the most likely issuance of the digital euro, it is expected that the central bank or trusted financial intermediaries would be responsible for the record the transactions.

The other method that the ECB describes for digital euro governance is decentralized, meaning it has no need for the European central bank or an “intermediary to be involved in the processing of every single payment.”

The ECB explains that a decentralized version of the digital euro would “feel closer to cash payments, but in digital form – you would be able to use the digital euro even when not connected to the internet, and your privacy and personal data would be better protected.”

This is an interesting and surprising approach by the ECB, and would bring the digital euro closer to cryptocurrency like Bitcoin, which was essentially built to end the reliance of the financial system on central banks.

While central bank digital currencies will have the speed and practicality of cryptocurrency, opposition to crypto is fundamentally why CBDC will soon exist and philosophically they are the antithesis of everything that Bitcoin was created for—to escape the constraints of a broken financial system, empower individuals with financial autonomy, and to bring transparency and trust to finance.

FUSANG Exchange Lists First Publicly Available Blockchain-Based Digital Bond Backed by CCB

Asia’s first digital security exchange FUSANG is partnering with the world’s second largest bank, China Construction Bank (CCB) to offer the first ever digital, tokenized, blockchain-based bond.

FUSANG’s First Digital Security IPO Revealed

CCB and FUSANG Exchange, Asia’s first digital securities exchange, take the lead to bring to market the first blockchain-based digital bond accessible to global investors

The bond, Longbond SR Notes USD (LBFEB21), is to be provided by CCB Labuan Branch at a discount and will be listed on the FUSANG Exchange on the Ethereum blockchain, supporting trading in USD or BTC. Regarding the digitalization of assets and its connection to cryptocurrencies like BTC—FUSANG Exchange CEO Henry Chong told Blockchain.News:

“There are a lot of people today trading crypto, and there are a lot of people who are licensed to list and trade securities on traditional stock exchanges, but as far as we’re aware, no one is actually directly bridging the two.”

This CCB bond represents the first digital security to be listed on a public stock exchange that is directly accessible to the public. This is an important step along the path towards the adoption of Fintech within traditional financial institutions, and further testifies to the value of blockchain technology in digitalizing traditional assets and utilizing cryptocurrencies.

What exactly is a digital bond?

As opposed to other digital assets on the market, this digital bond is a real digital asset in substance. Mr. Chong explained how the asset works as a traditional bond that has been “tokenized” and issued on a blockchain, as compared to other bonds issued by banks that are referred to as “digital” merely because they are exchanged via a mobile app, but aren’t actually held digitally. The difference is that one asset is fundamentally digital and written into the blockchain, while others are just exchanged via a digital medium.

Financial Inclusion through Digital Securities

The motivation for transforming traditional securities to digital ones lies in increasing their exposure to global retail investors, not just accredited and institutional investors. Mr. Chong stated, “What we’re bringing to the exchange is full transparency in the way that it’s not only a public IPO, but that both retail and institutional investors can buy in on a level playing field…global investors can now benefit from access to an investment previously reserved for only the largest institutions, together with low and transparent fees.”

This also speaks to FUSANG’s stated mission of financial inclusivity, allowing everyone from millionaire institutional investors to retail investors to have access to all kinds of securities and digital assets on a decentralized blockchain.

CCB originally approached FUSANG with the idea of creating a digital bond, which was born out of the recent Chinese financial interest in blockchain technology. According to Chong, CCB was instrumental in supporting their technological endeavor while helping with the legal and regulatory hurdles of the IPO process.

The Start of Crypto 2.0

“Crypto 2.0,” according to Mr. Chong, refers to the institutionalization of digital asset products ranging from securities like shares and bonds, to other assets like commodities and real estate. Essentially, in Crypto 2.0 any exchange of value can be tokenized and represented on a blockchain.

On the idea of “Crypto 2.0” and expanding crypto to include more than just currencies, Mr. Chong said:

“Blockchain based assets like Bitcoin were magnificent proof of concepts where they show that we could use this technology to represent assets, and that we could provide the blockchain that acts as a radically different record keeping settlement. I think assets like Bitcoin are very interesting, but as a company, our focus has always been on securities.”

Using blockchain and cryptocurrency to digitalize value will have a revolutionary effect on our economy, and will greatly enhance investors and others’ ability to transfer value. Chong remarked, “you can use the technology to represent all kinds of assets. I think we are showing the digital asset world, and the financial world in general, that digital assets don’t need to be wild, volatile, and risky things.”