THE PRIVATE MARKET AND THE STO INDUSTRY

in #ixswap3 years ago

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Private markets are far high up than public markets in terms of value and growth, yet they still gave complex processes that can be easily handled if given the chance. The introduction of Blockchain has brought about a number of things, mostly positively influencing the society, and an example of that is the introduction of the STO industry.

Blockchain technology brought about STO because real-time assets could now be tokenized, giving them a chance in the DeFi world. Hard assets will keep getting tokenized, and the price will be placed at a lower stand than the normal price.

The total market size of the private market is currently at $7.5 trillion, showing its huge growth and impact on the financial market. The STO industry takes up about 0.014% of that size, and is worth $915 million which shows its growth. This growth is also good for the IX Swap platform, because growth of the STO industry means growth of IX Swap. The total market size of the industry is said to grow to $15 trillion in 2025.

WHAT EFFECT DOES TOKENIZATION HAVE ON PRIVATE ASSETS?
Once an asset(private asset) is tokenized, it unlocks the true value of the asset unlike in illiquid traditional markets where its true value cannot be accessed. As the asset can be traded, liquidity of the asset increases as fractions of the asset keeps trading in the market.

PROBLEMS FACED BY THE STO INDUSTRY

  1. Illiquid market: Even if the STO market grows at an rate of 59% annually, the monthly trading volume is still under $11 million.

STOs do not function like traditional exchanges that have a central body. It operates in individual exchanges. These exchanges keep an amount of tokens with them as they sell them. This brings about the low liquidity of the STOs in each exchange.

  1. Inadequate exposure of real assets in DEX protocols: Digital wrappers have done good work in exposing non-crypto assets. When synthetic of real assets was introduced to the crypto world, it served as a great achievement for the space, yet it not new in the traditional financial world.

The traditional finance version is the introduction of synthetic ETFs in 2001. However, these assets do not give enough equity rights to the real assets. Token holders only enjoy economic benefits from these securities, nothing more.

SOLUTIONS THAT IX SWAP PROVIDES

  1. Liquidity pools: IX Swap will make it easy for users to stake their IXS tokens and become liquidity providers. In return, they receive a share of the pool's profits. There is a difference of liquidity providers of cryptocurrencies and STOs/TSOs.

The main difference between these two is the fact that the custodial assets(STOs and TSOs) need a third-party licensed custodian. The complications of security tokens have led to the need for a licensed broker to authorize the transactions.

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Conclusion
IX Swap is the last hope that the STO/TSO industry needs at this moment. The platform will be the liquidity solution that the industry has searched for all these years.

USEFUL LINKS
Website : https://ixswap.io/

Litepaper : http://ixs.loc/app/uploads/2021/08/IX-Swap-Litepaper.pdf

Medium : https://ixswap.medium.com/

Twitter : https://twitter.com/IxSwap

Facebook : https://www.facebook.com/IXSwap/

Telegram : https://t.me/ixswapofficial

Linkedin : https://www.linkedin.com/compan

AUTHOR'S DETAILS
Bitcointalk Username: Nancyo
Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=2759950;sa=summary

Wallet Address: 0xeF728a6f7aB532bac5b2662B9eE6a0C097bc5243