Why is securitization important for Cryptocurrency?

Why is securitization important for Cryptocurrency?

Why is securitization important for Cryptocurrency?

The future of bitcoin and other cryptocurrencies is blooming like anything since the beginning of 2017. In the mid of 2017, the Australian government has decided to use bitcoin as a form of digital payment for goods and services. It also said that there will not be any new taxes levied to these payments. In August 2017, Japan has also accepted bitcoin as a form of digital payment. More countries like Norway is also planning to introduce digital currencies into their payment system.


So, it is really a significant development for the cryptomarket to enter the real world. This kind of announcements has already really turned the focus of many institutional investors like banks, mutual funds etc towards bitcoins and other digital currencies. But, there is a major threat for the institutional investors to buy or sell cryptocurrencies from the traditional cryptocurrency exchanges.


Do you know what is that major concern? Security. Yes. Even though the exchanges use the latest technology like blockchain for processing the transactions, they are not highly secured. These exchanges may be the ideal solution for small-scale investors and speculators as their investment amount is limited. Also, the small scale investors will only have short-term investment plans as they expect profits in quick time. If they don’t get the expected profit, they will change their direction towards other areas of investment.


But, Institutional investors need some kind of highly secured platform that follows all kind of legal regulations. To address these concerns, CyberTrust S.A, a Luxembourg based company is developing a highly innovative securitization platform for the investment in bitcoins and other digital currencies. It is following an approach that is already proven and used by the renowned institutions like Forbes. The platform will be developed exclusively to meet the needs of the institutional investors. To get access to the platform, the investors need to hold a special token called CABS token that will be sold by the company during their token sale in November 2017.


Definitely, you will have this question in your mind already. How is this platform going to provide better security for the digital currencies?The goal will be achieved by implementing the below concepts:

  1. Cryptoderivatives — As raw cryptos are more tangible, the investors will buy derivatives of the cryptocurrencies from this platform as its value depends more on the value of the specific asset like a commodity, currency etc.
  2. Offline storage — Software wallets are more vulnerable to hackers and other kinds of malware. To protect the assets, CyberTrust provides the option for storing the private keys of the assets in cold storage vaults developed and maintained by the leading vault supplier named Xapo. These vaults will be monitored on a 24/7 basis by a highly skilled team. For better protection, these vaults are physically located in sever undisclosed geographical locations where the internet access is forbidden.
  3. Auditable ownership — The CyberTrust platform entitles the owner of the assets by creating and issuing a new ISIN (International Securities Identification Number) based security named GCN (Global Crypto Notes) which makes the trading completely legal.



View original content here: Medium.com

Dani Zaharie

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