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RE: The Future: Tokenization Of All Debt

in LeoFinance4 months ago

My views on this is can be simply put as;

Wow can't wait for it to spread

The tokenization of debts in terms of bond but this time crypto bonds and treasury bills it's a very fascinating capitalization of cryptos, all though I quite don't get how this works even after you explained it;

Bonds and other Financial debt instrument are known for not being flexible in terms of value, they are your principle with interest and nothing more except in the case of preference shares.

The crypto market is well known for its volatility as it is affected by demand and supply a lot more than most business (the effects are more visible to an average human who doesn't understand the workings of the business world) which make me think isn't that more suitable to stocks, like to me hive is a dividend paying stock, the only difference is you have to still do work than it just being passive to get dividend aside that percentage increase per share still occurs here in HP like in stocks. Isn't it more suitable?.

Bonds on the other hand are fixed and crypto isn't, is that really not a problem as the safety net in bond will be altered ?.

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Stablecoins are crypto and are not volatile...not those with any any volume.

When you have a token tied to a treasury then you are following the underlying assets. Naturally, even bond prices can go up and down.

So stablecoins will be created or used in terms of treasury bills and bond that will be awesome, investment is becoming more approachable by the common man.

No I was using stablecoins as an example of a crypto that isnt based upon volatility.

As for the use, a stablecoin could be used to buy the Treasury tokens. Since it is on a blockchain, USDC or some other coin could be used for purchase.

I get it now, treasury tokens will be another form of crypto that can be purchased by other coins