CDRX factional ownership of Shares
A lot of people have high hopes on blockchain technology opening up fractional ownership to power up a wave of individualized real estate ownership. Housing isn’t the only asset that’s expensive.
CDRX is setting its eyes on securities, and in its work to tokenize both existing and new securities, it could bring fractional ownership of shares. Now, you may think why would anyone want a fraction of a share?
Most people agree that diversification is good. Most people also have limited amount of funds to invest. There’s a small problem here: some of the best shares cost more than a grand a pop. Amazon has been one of the best performers of the past decade and its shares cost nearly 2 grand. A small diversified portfolio cannot afford to have Amazon in it, and most investors in general, especially in developing countries, have no chance of owning a single Amazon share.
Tokenization of Securities
CDRX is coming up with a novel concept of security tokens. It isn’t a start-up issuing equity-backed tokens; CDRX is taking both existing and upcoming securities and tokenizing them. Now that’s the right way to launch a securities platform.
A CDR is short for crypto depository receipt and its emitted when a stock or bond is deposited at a depository bank. CDRX provides a platform for trading CDRs.
One of the key reasons cryptocurrencies have had such a quick rise in overall market value is that anyone could buy them. $6,000 coin too expensive for you (Bitcoin), well then buy 0.1 of it, or 0.001 of it. Whatever fits your budget. Another factor is that anyone can buy coins without any geographical limitations. By tokenizing securities, CDRX brings the accessibility attached to tokens to cryptocurrencies.
CDRs will make it possible to buy fractions of a security, removing the monetary hurdles many people would face when buying some of the best performing stocks. Moreover, investment opportunities in foreign securities will be more accessible. In a nutshell, get ready for better diversification opportunities. Rather than relying on odd derivatives to access investment opportunities in developing nations, directly buy the CDRs with the same ease involved in the purchase of tokens.
CDRX Impact on Crypto Space
Till now, blockchain companies have been trying to bring the masses to their side. CDRs instead take the table to them.
The global securities market crosses $600T. CDRs open this market to a new class of participants: people who lack heavy funds or limited by geographical location. These people can access the opportunities in the securities market only through CDRX. Not only that, they get to access it at better trading fees and fulfillment efficiency.
There are going to be genuine regulatory hurdles in making CDRX a reality. Without CDRs, the project is going to be just a crypto-fiat exchange. While a basic exchange is a good business, it’s severely short of the impressiveness of an exchange that facilitates trade of the natural evolution of securities: CDRs. We hope that CDRX’s team can manage to turn CDRs into a reality. The team expects to lock initial regulatory approval in Q1 2019.