Comment Re:This is not about crypto (Score 1) 21
I'm not an expert in any of this, but my understanding was that blockchains were good at (a) being distributed and (b) holding the value of the asset directly on the blockchain. For example, the blockchain holds the actual bitcoins I just mined.
However, the blockchain doesn't hold the actual shares - it might hold a serial number of a given share, but not the actual share itself. Therefore, you can imagine a way that I might buy some tokenised shares, and sit back to count my money. You buy the same physical share some other way, and potentially you get the actual share certificates, where I don't bother to try because I believe the blockchain will save me from all ills.
I don't know how possible that is, or if it matters given how many shares exist for even the smallest stocks. It's just a niggle in the back of my mind.
My other 'niggle' is the time it takes to settle a trade. In a centralised exchange, the time to settle is really the time it takes to physically write the trade down on the various systems it needs to go into - and then verify all of those writes (which is roughly a pipeline operation, so a big trade behind you won't affect your trade). Once done, you get your settlement notification and the price you actually paid. I'd say most people experience those prices to be "about the same" as the published price when they pressed the "buy" button.
For blockchain, those writes could take hours - what share price do you get? Would it be the beginning of the write cycle, the end of it or somewhere in between? I don't imagine you'd ever know. Will be interesting to see how it plays out.
What actual benefit does a decentralised database offer here? I suppose anyone could read it and so could calculate current prices from it themselves (and feed that to others or their own trading systems). After that, I'm not sure how it helps. Somewhere, someone ultimately has to mark the actual share as 'sold' so that no one else can buy it - that's never going to be distributed.
Lastly, I agree about the payment choices of OKXICE to be unfortunate as they completely confuse the issue. But I guess if you're a crypto advocate, to say "we're selling tokenised stocks, for paper cash money" is slightly confusing too, and maybe doesn't offer the "USP" that being able to pay in coins gives.