Episode 4: Unmasking the Unseen: The Infrastructure Powering Digital Securities

The Critical Role of Infrastructure in Digital Securities

In this episode of Old Men New Money, Douglas Borthwick discusses the often-overlooked but essential role of infrastructure in the digital securities market. He emphasizes the importance of alternative trading systems, transfer agents, and custodians in ensuring the smooth functioning of digital securities. Douglas draws from his experience at INX to explain how they built their own infrastructure to support digital assets, including the acquisition of Open Finance and Tokensoft's transfer agent. He explains the different custody models, the role of transfer agents in maintaining accurate records and compliance, and the challenges ATSs face in achieving liquidity. The episode concludes with an outlook for the future of digital securities infrastructure and practical advice for issuers and investors. This comprehensive discussion highlights the critical importance of robust infrastructure in the success and growth of the digital securities market.

00:00 Introduction to Digital Securities Infrastructure

00:10 The Importance of Infrastructure in Digital Securities

00:44 Building the Necessary Infrastructure

01:09 Critical Components of Digital Securities Infrastructure

03:20 Custody Models and Providers

07:08 Role of Transfer Agents

10:41 Trading Venues and Market Liquidity

15:39 Global Developments and Regulatory Landscape

20:00 Future of Digital Securities Infrastructure

21:15 Practical Advice for Issuers and Investors

24:10 Conclusion and Future Modules

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