During a livestreamed conversation with Blockstream CEO Adam Back, Bitfinex chief technical officer Paolo Ardoino emphasized the importance of jurisdictions that support the Bitcoin industry. The discussion focused on the impact of securities tokenization on the financial world.
Both Ardoino and Back agreed that securities tokenization could have significant implications, including heightened user expectations. Ardoino highlighted the challenges faced by banks, which often use outdated messaging and settlement technology that hampers speed and interoperability. Tokenization, on the other hand, brings the advantages of Bitcoin to a wider audience.
Back also noted that tokenization would lead to cost reduction, enabling small businesses to enter the market. Additionally, the introduction of Bitcoin exchange-traded funds (ETFs) would enhance tax reporting and inheritance planning. This could broaden BTC accessibility and pave the way for innovations like BTC mortgages, allowing individuals with unconventional employment to purchase homes.
Ardoino predicted that the crypto industry would experience a shift in investor focus from “useless tokens” to more reliable financial products like BTC ETFs. This change in investor sentiment could impact the industry as a whole.
Back mentioned that Blockstream Mining Notes, which provide exposure to BTC mining, will mature in the summer. These notes are securitized under Luxembourg law.
Bitfinex Securities, licensed in Kazakhstan’s Astana International Financial Centre (AIFC) and El Salvador, was also discussed. Jesse Knutson, head of operations at Bitfinex, acknowledged that these jurisdictions may raise eyebrows among investors and issuers, as they are not typically associated with global capital markets. Ardoino pointed out the decline of jurisdictions like London and Frankfurt since the 2008 financial crisis.
Bitfinex Securities launched in the AIFC in 2021 and opened in El Salvador in January. In October, it issued a Tether (USDT) denominated bond on Blockstream’s Liquid Network, although it initially received limited enthusiasm. The Liquid Network operates as a BTC layer 2 protocol.
In related news, SpaceChain, Blockstream, and Cryptosat are exploring the integration of blockchain technology in space. These companies aim to establish fail-safes and enhance the security and reliability of space-based operations.