Digital Securities Industry Development Report 2020：Insights of Encrypted Assets New Forms

Digital Securities Industry Development Report 2020 has been officially released on March. 25, 2020. This report is written by six blockchain institutions including Cabin VC, Binance China Blockchain Institute, GSX Group, HKBitEX, Ontology and UPRETS. Both Chinese version and English version can be downloaded from the official website of Cabin VC、GSX Group、HKBitEX、Ontology、UPRETS、Chainews as well as the WeChat official account of Binance China Blockchain Institute.

The report firstly discusses the overall digital securities market development in 2020. As data showed, the total market cap of the digital securities industry reached $366,523,463, which is a over 500 % increase compared to 2019. A large proportion of existing digital securities assets derive from real-world assets, and real estate equities remain the major asset type traded in the global secondary market. Despite the rapid growth, the digital securities industry is still in early-stage development, the technical infrastructure is not mature yet, existing protocol standards for issuing cannot process complex-structured assets.

Digital Securities are born under the law, are legally recognized as securities, thus the regulations become the most important external factor that affects the development of the digital securities industry. The report says that the United States remains a leading role in the global regulation field. SEC approved the DLP proposal (Direct Listing Process ) in December.2020, this proposal allows issuers to raise capital by selling new shares directly to the public through a direct listing. The principle it advocates is fairness, which means decentralization, openness and transparency, and equal opportunity. Such concepts and principles are consistent with what digital securities and DeFi emphasize. In other words, decentralization is becoming the new future of the financial industry.

Moreover, the report exampled the Grayscale business model to discuss the interaction between digital securities and financial industry. Grayscale effect implies the positiveness of regulation, regulations can bring dividend effect to the digital securities industry, as well as providing new direction of business expansion. Meanwhile, “Asset digitization technology can …… [increase] financing opportunities, [reduce] process costs, [reduce] process complexity, and [improve] transaction security and speed”, eventually benefit micro-enterprises by solving financing problems in some level.

The outbreak of the DeFi ecosystem in 2020 draws out the exploratory practice of how blockchain technology is forming future digital assets, the technological standards of real-world long-tail assets such as real estate and artworks digitalization are gradually developed. The underlying assets of digital securities are mostly backed by real assets, as supplement the basic assets of the DeFi ecosystem, digital securities can fulfill DeFi’s asset credit expansion needs, and improve circulation efficiency.

“This report serves an educational purpose,” stated by these six publishing institutions, “We firmly believe that the digitalization of real-world assets driven by digital securities will become trendy worldwide within 3–8 years. It is hoped that through this report the blockchain industry can notice the latest developments in the digital securities industry, public awareness of the digital securities industry can then be increased. ”

About UPRETS:

UPRETS is a platform focused on simplifying investment in real estate by advising on and digitalizing assets and securities.

We are dedicated to providing a convenient, legally compliant and advanced real estate digital securitization platform for property developers, asset owners and investors globally.

By utilizing our UPRETS platform, real estate developers and assets owners can create digital securities for their properties, providing investors with various low-barrier, secure and convenient forms of investments.

Backed by a publicly listed real estate conglomerate (NYSE:XIN) and our award-winning, patented blockchain technology, Xbolt, we bring a network, experience and luxury assets to the platform.

For more information about UPRETS,

visit https://www.uprets.io

LinkedIn: https://www.inkedin.com/company/uprets2019

Medium：https://medium.com/uprets

Twitter: https://twitter.com/uprets_io

Facebook: fb.me/uprets2019

Lastest SolarX Project MakerDAO Forum: https://forum.makerdao.com/t/solarx-mip6-application-uprets-solarx-industrial-real-estate-backed-loans/6718

OST Digital Securities MakerDAO Forum: https://forum.makerdao.com/t/ost-1-mip6-application-by-uprets-real-estate-backed-digital-security/4438