Ep. 48 - Security Tokens Taking the City of London by Storm?

Tokens That’re Set to Take City by Storm?

Security Tokens: Rising rapidly into the Billions?

Security Token Offering (STO) investor Mike Barrell says that security tokens represent “a massive tidal wave of opportunity” for not just geeks but those in the city in 2019. Now he’s putting his money where his mouth is as the founder of next week's 'Security Tokens Realised' conference in the city, bringing together the leading minds in the field from the four corners of the planet.

Inevitably ‘The New Normal’

He also believes it is inevitable that such token in their various forms, representing stocks, bonds and new instruments, will become a ‘New Normal’ for major banks, stock exchanges and the city – able to replace traditional equity,  bringing additional liquidity. “We're talking hundreds of millions which I think will quickly go to billions in terms of property portfolios and the tokenisation of existing funds for example.”

If this sounds just like insupportable hype then think again. It's widely thought that 2019 will be the year of the Security Token, for good reasons. An increasing number of people see this as a natural progression not just for ICOs but for the mainstream too.

Tokenising to Scale

Of course there will be some of that, startups and early-stage companies seeking capital, but the vast majority of security tokens, he believes, will be completely different. And far easier to understand than all the ICO white papers and video pitches, because they will be coming from established companies. So they can be valued in established ways that are familiar to those versed in banking and private equity - without the need to understand blockchain, tokens, and tokenomics

Adoption Will be Rapid….

Which is why, he says, adoption will not just be rapid and the pace rapacious but shortly the established banks and capital markets will have little choice but to dive-in simply because the commodities in which they need to invest will be available only as tokenised securities.

A Turning Point in Financial Services

The conference is certainly timely and promises to be a milestone, and possibly a  turning point, in the rapid development of tokens and the adoption of blockchain technology as the means of choice to keep account and track ownership. Fostering more fluidly than ever before, at minimal cost. Microscopic cost when compared with more familiar digital transactions, let alone paper (which many of those digital transactions just ape).

An Inevitability?

I asked Mike if this shift is really an inevitability?  "I think absolutely it's 100 percent inevitable." He says. "The train's left the station. It's happening, and the event will be absolutely packed. We have 35 different media outlets clamouring, all extremely interested - this is very, very hot. Because the market that's involved with security tokens will rapidly go to Billions".

Why? "Direct ownership” means there aren't a lot of margins being skimmed off everywhere on each transaction. Plus the removal of most of the cost and friction also allows a kind of hyper-fluidity. "There are a lot of elements , not just one element at play here. There's liquidity, there's cost cutting, there's availability, there's access to assets that people can't currently invest in - including physical assets such as property and art. Plus it's a win-win thing; the person with the asset wins and the investor wins".

It’s Happening Now

If you’re in the city, says Mike “You need to learn about this and you need to be part of it because it's happening.”