Step-by-step comparison of traditional underwritten stock issuance (4-7% fees) vs smart-contract issuance. What code automates and what still needs professionals.
- Blockchain stock issuance, using smart contracts, can automate record-keeping and settlement functions traditionally handled by intermediaries like transfer agents and clearing agencies, potentially reducing costs compared to traditional underwritten issuances.
- While code replaces manual record-keeping and settlement, essential professional roles such as securities counsel, auditors, and compliance officers remain critical, and a smart contract audit is an additional cost.
- The article highlights the evolving regulatory landscape, with recent SEC no-action letters signaling increased acceptance of on-chain issuance, and emphasizes that the true cost savings lie in replacing specific intermediary functions rather than eliminating all professional involvement.
Topics: Asset types, Infrastructure providers, Scalability, Financial instruments, Tokenization platforms, Market depth liquidity
Tags: #blockchainstockissuance #underwriters #smartcontract #costbreakdown #securitiescounsel #auditors #compliance #erc3643 #dtcc #stobox
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