Tokenized securities and portable identity.
NYC
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The pitch CEOs keep hearing for tokenized stocks is 24/7 trading. That is an exchange benefit. Venues earn fees on volume. Issuers do not.
Companies raise capital by selling shares to people who believe in the business. They want more holders who understand what they are buying.
That means demand from new buyers. There are many of them in emerging markets who want U.S. equities and have not been able to get onto traditional venues with access to the full range of U.S. stocks. Tokenized stocks can reach those people.
Issuers still need to know who is holding. They have responsibilities to existing shareholders and to regulators. That is a fair critique. There is overblown panic in this ad, but the resistance makes sense. We need to meet in the middle so we get the benefits of tokenization without scaring off the biggest new potential users.
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Opacity Labs retweeted
Reusable KYC is stuck because people conflate two different things a verification can be:
1. a judgment ("this person is fine")
2. a set of facts with provenance (who recorded what, when, from where)
Medicine keeps these seperate. Dr Alice saying "Bob is healthy" is a judgment. A blood panel stamped with the lab and date is evidence.
If Bob brings Dr Alice's note to Dr Charlie, Dr charlie cant really lean on it. if Bob gets hurt its Dr Charlie's license on the line not Dr Alice's. So he orders the panel again
That's excatly how the BSA works. every institution owns its own obligation and no contract moves that liability to someone else.
Most "re-usable KYC" proposals are asking regulators to let Dr Charlie rely on Dr Alice's note. Nobody in medicine would propose that. Worse, if every Dr Charlie relies on the same Dr Alice, one bad Dr alice corrupts every file downstream
You dont fix the second opinion problem by making Dr Alice's opinion legally binding. You send the bloodwork.
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Opacity Labs retweeted
Can attest to this as someone who has built lending in emerging markets.
There are hard unit economics of scale and verifiability that makes a “Maria silva” unviable to lend to in the old world order.
What opacity is proposing, is an orders of magnitude upgrade to the “poverty of verifiability” that can make capital markets work for the rest of the world in a way that was never possible before.
Excited to see a lot of unsexy work fructify for the team over @OpacityLabs ❤️
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In BlackRock's annual chairman's letter, Larry Fink wrote that every stock, bond, and fund can be tokenized, and that if they were, transactions that currently take days would clear in seconds, and capital immobilized inside delays could be put back to work.
Be first.
SPY, IVV, and VOO hold the same 500 stocks, but SPY was first, to compete, BlackRock (IVV) and Vanguard (VOO) cut their expense ratios to 0.03% vs SPY's 0.09%. SPY stayed the largest ETF in the world for three decades anyway.
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Opacity Labs retweeted
SPY, IVV, and VOO hold the same 500 stocks, but SPY was first, to compete, BlackRock (IVV) and Vanguard (VOO) cut their expense ratios to 0.03% vs SPY's 0.09%. SPY stayed the largest ETF in the world for three decades anyway.
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It certainly is a banger.
> Institutions do not want to avoid KYC, they want to avoid redundant KYC
banger mcshlanger
@OpacityLabs version: bring the compliance to the liquidity, not the liquidity to the compliance.
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Blockchain's distribution advantage is that thousands of compatible wallets and applications can offer access to the same asset.
We have barely scratched the surface of what this means for global finance.
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KYC as we know it is dead. We can do better.
opacitylabs.com/newsroom/ai-…
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Deepfakes have beaten document-and-selfie checks. Sponsor banks are responsible for every customer their fintechs sign up, and soon they will have to cut off fintechs that cannot prove their customers are real.
If you run a fintech or wallet and want AI-resistant credentials for your users, let's chat.
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Source-grounded verification means users connect to multiple authenticated sources directly. The user's own login and TLS encryption prove the login and account are real.
Cryptographic proofs bind to user accounts, so credentials are portable. No fake selfies needed.
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No redundant onboarding is a better UX for investors. Reusable credentials can simplify investor onboarding across many independent wallets and front-end apps.
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