These are intriguing days for the financial markets. The winds of digital innovation are sparking significant change in the capital markets.
Blockchain technology has the capability to bring organizations together by forging ecosystems that magnify the value delivered by each actor on their own. Such an ecosystem, like the Blockinvest one, has the power to drive disruption and innovation across industries that are not digital native (Real World Assets).
In particular, Blockinvest was created by putting ourselves in the shoes of financial operators and institutions. For this reason, corporate actions are a core part of Blockinvest Ecosystem. Mandatory corporate actions involve all shareholders of a company, however, corporate actions are naturally complex and intricate.
With such complexities, corporate actions need some modernization and improvement, powered by blockchain. Here are some of the key areas that this Blockinvest technology that can bring drive innovation:
- Issuance of securities
- Dividend Distribution
- Supply Regulation (Burn, Mint)
- Cap Table
- Protection and Security
- Direct communication with Investors
Transparency and immutability of transactions in the blockchain provide an opportunity to improve the auditing of shares, increase control over the transfer of shares, removing the possibility of abuse by a single actor.
BlockInvest’s smart contracts are created in such a way that to manage a complete flow “from cradle to grave” requires 3 accounts with different responsibilities for the creation, whitelisting and transfer of tokenized financial instruments. Although this might complicate the process, it makes it also more secure, compliant and adherent to the normal operations of the current market. participants.
Efficiency and trust between the players are the first results that the sector of corporate actions will receive as a result of the integration of blockinvest solution.