Stocks on Blockchain [not crypto ETF related]

Hi, right so I’ve been wondering, since there’s been a little discussion about it recently, it seems some companies are considering moving their shares to the blockchain, which considering the persistence and security of them, does indeed seem more appealing than a contract of ownership…

If say Amazon wanted to take this route, and began offering it’s current shareholders the ability to transfer their equity to some bespoke amazon cryptocurrency, would freetrade be able to accommodate this in the near future?

Recent discussion about the topic - https://youtu.be/d3v4KKjXNhg

Could you elaborate so I don’t have to watch the video?
What do you mean by ‘on crypto’? Or do you mean Blockchain? The latter could be done and would not have much effect. The former I don’t understand but can assure you that the financial conduct authorities would never allow that.

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I suppose I meant on blockchain but yes I meant using crypto technology to handle the transfer of shares.

You may well be correct in that authorities may not allow such conversion but it seems some companies are indeed looking to pursue this, or at least explore the possibility… perhaps if not by converting the traditional stock then maybe by running a new pool of coins alongside them (which if did catch momentum in some of the top companies would likely cause the diminishing of the traditional market anyway…)

But putting shares on a blockchain must work through exchanges otherwise they generally would not be tradeable.
Don’t understand what you mean by crypto or running a pool alongside?! Blockchain does not have to have anything to do with a Cryptocurrency.

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Yes there are some exchanges looking into this, hence my question. I’ll admit, they’re currently mainly for new start-ups, but if companies do start finding success in this method then it wouldn’t surprise me if the traditional companies followed.

Also, anything that does exist/trade on the blockchain does indeed resemble a cryptocurrency due to the very notion of what a cryptocurrency is… if Tesla began liquidating equity on the blockchain it’s very likely it would be known as Tesla coin or something…

No. Your last paragraph is just wrong. It has nothing to do with coins if you don’t want to. And this will be certainly no solution. Companies will not offer coins as certificate of ownership. That’s unrealistic.

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Given that everyone trusts the existing registrars, why move from an efficient centralised system to the blockchain?

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Why have the registrars to start with, why not automate it… saves effort, time, money and by its very nature is secure and cannot be manipulated. No brainer in my opinion.

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Converting the registrar to a blockchain does not mean you don’t have a registrar. It just means you have an inefficient one burning electricity to earn registrar-coin.

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The power usage can’t really be that much more than the amount of processing needed for traditional electronic brokerage transactions, especially considering encryption algorithms are continuously being developed in attempt to make them more green.

I agree with DarkRabbit that I would much rather hold my shares in my pocket and be able to ping them to my friends along with any company benefits they may carry [x free next day deliveries per month for every Amazon coin in your wallet anyone?]

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We shall see buddy

Haha! Love it! Hoping that’s got a bit of comedy behind it as blockchain does not need to be inefficient nor use lots electricity :slight_smile: :zap: :control_knobs:

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The security risk of this at the moment is just too high for major holders imo
It’s definitely not out of the realm of possibility that shares move onto a blockchain in the form of smart contracts. But this world is currently not broken so why try fix it, that’s an actual question?

Well I’m not whole-heartedly backing the idea, I’m as happy buying stocks on freetrade as the next guy, I just believe its something we may see materialise over the next few years, for both the reasons I’ve already mentioned, and also because of the lack of western regulation which would most definately appeal to the rest of the world…