Blockchain technology companies since January digital assets Published at least 8 books press release We detail our progress towards completing the Canton Network, a blockchain ledger designed to store tokenized assets. To run the Canton Network pilot program, Digital Asset Custodian Trust Clearing Corporation and euro clearTwo of the most influential financial institutions in the world.
The success of these pilot programs signals the imminent arrival of a global dematerialized macroeconomic system, which could lead to the loss of remaining property rights to virtually all assets.
Are you ready to be happy without having anything?
DTCC and Euroclear play an important role in the following areas: tokenization. DTCC is payment providerstands at the “center of global trading activity” and processes trillions of dollars in securities transactions every day. Euroclear, on the other hand, is a “leading international central securities depository (ICSD).” Together, these organizations process the majority of the world's securities transactions.
In DTCC's pilot program, U.S. government bonds were tokenized and used as collateral for margin calls. In the future, other tokenized assets may also serve as collateral for similar purposes and beyond.
deloitteWhich observed In Canton Network's pilot program, the purpose of tokenization is to transform illiquid assets, create new assets that can be used like cash, and make assets “cash-like” so that more customers can The goal is to open up capital markets and automate trading. The Canton Network pilot program demonstrated the potential to achieve all three goals.
The organization behind Canton Network presents Canton Network as a promising solution to address ownership and privacy issues associated with other blockchain networks. Although tokenization comes with significant risks, it can be inherently benign and even beneficial if designed properly.
However, the Canton Network's tokenization, storage, and management processes lack sufficient precision to ensure that investors retain property rights. Even more concerning is that Digital Assets says: report Canton Network complies with Sections 8 and 12 of the Uniform Commercial Code, the comprehensive set of state laws governing commerce in the United States;
in paper In a co-author with Heartland Institute Research Fellow Jack McFarlin, I discuss how the UCC is already infringing on ownership rights in investment securities through the creation of a legal concept called “securities rights.” . Amendments to Article 8 change individual securities investors from outright real estate owners to “title holders” and allow the world's largest banks to seize what is most considered personal property in a bankruptcy scenario. I can now do it.
As we highlight in our paper, the proposed UCC Article 12, along with amendments to Article 9, threatens to extend this framework to: All tokenized assetsfurther benefiting too-big-to-fail financial institutions at the expense of individual property rights.
Digital Asset claims in its report:
Creating a digital twin of a UST [the Article 8] Framework: While a security interest in the underlying “original” UST is perfected by Article 8, a security interest in the controllable electronic records representing the UST is perfected by established control over the digital twin. However, the phrase “digital twin” can ultimately cause confusion. Market participants should consider simply describing these as security rights represented by ledger entries on the blockchain.
In layman's terms, this means that tokenized assets function exactly like “security entitlements.” In other words, this technology allows digital assets and their allies to legally own everything that is tokenized and stored on the blockchain.
As McFarlin and I explain, “UCC Article 8 defines individual securities investors as rights holders, but ownership rights in the securities that investors believe they own are No. Amendments to UCC Articles 9 and 12 would define individuals as purchasers of “interests.” It is considered neither a secured party nor an eligible purchaser. ”
Let me further clarify that:
Under this new arrangement, “title holders” are treated as unsecured creditors rather than property owners. A “secured creditor” is a too-big-to-fail financial institution to which a securities broker pledges investor assets as collateral for a loan or derivative. In other words, if a stock broker or DTC/DTCC goes bankrupt, its creditors (primarily the world's largest banks) have priority over the securities investors believe they own.
As of October, 25 states and the District of Columbia It's passed The 2022 amendments to the UCC that create Article 12 and update Article 9 for this centrally controlled and tokenized economy.
Why is this happening?
According to David Rogers Webb,great challenge”, more collateral is needed for the derivatives market to survive. Turning currently illiquid assets into liquid collateral solves this problem while giving banks greater control.
Once everything is tokenized, all assets become collateral in the derivatives market, where too-big-to-fail financial institutions become secured creditors and therefore legal owners of all our assets.
it's no longer a problem if All assets are tokenized, when They are tokenized. Are you ready to be happy without owning anything?
