Hey guys, so today let's talk about this rumour surrounding tokenization of stocks. An innovative idea came from Wyoming USA State with the purpose to improve block chain and ultimately create to more enhanced network of chain.
In essence, the tokenization would mean that shares of the company will have a different form of representation as we would normally used to see. According by the new law, which has been accepted this January and which will come into effect in summer 2019 (July), any share certificates will come in a form of certificate tokens.
What will the tokenization mean for shareholders?
The value of certificates will not drop as a result of this transformation. All it would mean is that thew chain will contain new more token - friendly users that are moving towards new ways of storing their shares and stocks as oppose to less old fashioned ways back in time when no such thing as "token" would not mean much.
What good will tokenization gonna bring?
Lets for example say a user got a fair share of APPLE or TEFLO shares. If a user decides to tokenize Apple and TEFLO share, that that would mean that user will be able to buy or sell these shares regardless of where they are geographically. So in other words, a user can perform transactions from any part of the world, even from home. Cool isn't it? Lets look into one empirical example of this.
For instance of the price of a share price is x amount (if user buys it from USA). If a user is not located in a USA and wants to purchase from a share, then the broker will charge for their service. However if the shares will be tokenized, there wouldn't be any need to deal with brokers. As a result the user will be able to save. The other advantage of tokenization is that user can buy shares more quickly.
To conclude, one could say that with tokenization, the block chain will be filled with more "happy" users as they'd make a fortune on saving and therefore a saving can be converted into long term future investment.