Simple. Profit. They figure if they can capture even a small percentage of the funds flowing into Blockchain they can increase their profit margins.
Comment on Nasdaq Seeks Nod From U.S. SEC to Tokenize Stocks
black_flag@lemmy.dbzer0.com 5 days ago
Fucking why?? What’s the point?? You’ve already got a database, what does making it immutable and decentralized and inefficient help?? It’s still under a central authority, so it’s not even proper decentralise.
KOhBaby@lemmy.world 4 days ago
Lemming6969@lemmy.world 5 days ago
Prevents naked short fraud and manufacturing shares that they can locate at a later date.
jacksilver@lemmy.world 5 days ago
How does a regular database not do that?
Either it’s tracked or its not, the medium for that tracking doesn’t really change much.
witheyeandclaw@lemmy.sdf.org 5 days ago
It probably doubles the amount of times they can do it.
NotMyOldRedditName@lemmy.world 4 days ago
It would reduce the settlement time from multiple days to likely minutes.
When you trade a stock today, it’s not actually complete for 2 or 3 business days as it has to go through the settlement process. Generally, it doesn’t cause problems for retail traders, but even for us it can introduce real issues sometimes and delay you from making a trade.
For example, in Canada, the cheapest way we can convert CAD<–>USD is through a process called Norbits Gambit.
You buy DLR.TO (CAD) or DLR.U.TO (USD) and then your have them journal your shares from one to the other for free, or a small fee like $10. You don’t pay an exchange rate fee, however, because the trade hasn’t actually settled when you buy the shares for 3 days, they can’t journal them. So for 3 business days you’re exposed to any fluctuation in the exchange rate. Generally that’s cheaper than what a bank will charge you and it’s the risk you take. It’s also a 1 way risk, I can’t recall if it’s USD -> CAD or CAD -> USD, but one of them is locked in, and the other is exposed.
At WealthSimple, when you sell some shares, you can’t actually transfer the money to your bank account on the same day.
I’m sure it can cause more problems for professional traders and institutional stuff.
misterztrite@lemmy.world 4 days ago
Stocks on the Nasdaq and the rest of the USA exchanges are at T+1, transaction date plus one day. So they settle the next business day not in 2 to 3 days like you mentioned.
NotMyOldRedditName@lemmy.world 3 days ago
Dlr is canada and takes 3 days.
And even a day is a long time. And then there’s weekends.
xenomor@lemmy.world 5 days ago
Because it either: Directly facilitates some fraud that they are trying to legitimize …or… They are trying to spend some of the perceived credibility of their stock market on legitimizing blockchain generally in the hope of facilitating some frauds that have nothing to do with their stock market.
Either way, it’s about fraud. It’s always, always fraud with anything blockchain related.