Tokenisation of Assets, Tokenised Funds, Smart Contracts, and Regulation
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Digital securities such as tokenised funds, tokenised debt, or tokenised shares take the concept of crypto assets a step further. Not only are they a form of ownership represented on a digital ledger, but much like traditional securities, they typically provide voting rights, are tied to a share of profits, or something similar. Digital securities are superior to conventional securities since they can be traded 24/7, globally, and they can technically be issued without legacy financial infrastructure. They give investors greater control and allow for a higher degree of portfolio diversification while allowing companies more flexibility with regard to fundraising approaches and business model innovation. With the realm of the digital euro, further significant efficiency gains can be expected since trading (i.e., delivery vs. payment) of such assets can potentially take place without clearing houses. Digital securities are an important component of the future of financial markets.