How do you keep pace with innovation? Returning to the podcast is Syed Hussain, the Co-Founder & CEO at Liquidity Digital, a blockchain-based FinTech firm that’s building an end-to-end digital security system. How does this work and how can it make our organizations more efficient, more compliant, and more profitable?
The shift to digital
Traditional forms of capital formation are simply not keeping pace with what the capital demands of the markets are. What blockchain enables people to do is take their existing assets, digitize and securitize those assets, and transform them into digital securities. At Liquidity, they’re building a platform that will allow for the issuance of these digital securities, paving the way for capital markets to go and take the digital route.
Benefits of digital security
Digital security is now bringing in opportunities that aren’t possible in the traditional world. Because these things are built on top of blockchain, it is inherently a very, very secure protocol. It’s transparent, as you’re able to store it on an immutable record and can trace any changes and transfers of ownership. It’s also accessible, allowing you to expand out into global markets. And because it’s digital, it’s made extremely efficient through automation, leading to massive cost reductions and a tremendous amount of savings.
Regulations and Innovation
Liquidity works hand in hand with regulators and partners with them: regulators are able to learn about the technology and build regulations around it, as well as helping Liquidity navigate regulatory channels so that while they leverage this new technology, they can make sure everything is compliant.
Regulators are being very open-minded in their approach, and are seeing this new technology as something to look forward to that is leading the charge. This is something that is going to bring in massive amounts of innovation, and while innovation is always going to be ahead of regulation, what’s important is that regulations are able to quickly catch up.
As innovators, the responsibility lies with us: we cannot make changes in reaction to regulations. We need to work with regulators so we can innovate proactively and have innovation through regulation.
Resources
Syed Hussain (LinkedIn)
Liquidity.Digital (Website)
Twitter