Blockchain

Blockchain Securities

Tritaurian is the first non-ATS broker/dealer to be approved for a license to sell digital private placement securities using distributed ledger technology, otherwise known as blockchain technology.

Blockchain securities are an emerging, yet rapidly evolving, implementation of distributed ledger technology with the potential to increase access and decrease costs for securities investors.

Tritaurian believes that blockchain based securities offer the opportunity to improve record keeping and transparency through the open nature of blockchains while increasing security and compliance through the programmable nature of blockchain tokens. 

  • Cryptocurrencies, such as Bitcoin, are blockchain tokens that are intended to act like normal money. The only use for a cryptocurrency is to purchase goods or services with them. Once a blockchain token takes on additional functionality it stops being a currency and becomes a security.

  • A common example of this difference is tokens issued on the Ethereum Blockchain. While Ethereum, or ETH, can be used directly as a currency in its native form, its tokens can also be modified into different structures, such as an ERC-20 token. Once an Ethereum token is created with additional features, such as an expectation of profit from a company, it is a security, just like a traditional stock or bond.

  • The nature of a blockchain makes the product more transparent and more accessible. In the traditional finance world, only a select few investors would ever have the chance to invest in a private placement. By utilizing blockchain and the SOMA platform, Tritaurian can open up the world of finance to a much larger section of the investing public in a transparent and complaint manner.

FAQs