Blockchain technology has garnered a lot of attention in the financial world, as the decentralized public ledger could transform the way the industry keeps records or handles transactions. Several banks all over the world are trying to explore the applications of blockchain technology in their internal operations while some forward-looking companies such as Overstock have experimented with the bitcoin-related technology in securities clearing.
For blockchain-based private security company Symbiont, blockchain technology could spell the future of Wall Street through ‘smart securities’ or ‘smart contracts’.
Blockchain Technology and Smart Securities
According to Symbiont CEO Mark Smith, the company plans to focus on private equity markets. He explained that many startups are avoiding public offerings and that a robust private securities market might shape the future of finance.
“You look at companies like Uber in Series K or Series N rounds, the allure of going public isn’t what it used to be,” Smith cited. “What can be done then is transfers to other securities. Because we did straight equity and debt, we demonstrated you can do a bond on the bitcoin blockchain and then you can do it on a permissioned ledger system.”
Aside from private equity, Smith also sees potential in the corporate bond market. He also said there is a future for blockchain technology in the syndicated loans marke where groups of lenders work to provide funds for single borrower, thereby spreading out the risk associated with a potential default.
For CTO Adam Krellenstein, ‘smart securities’ differ from blockchain assets in that Symbiont has been able to create its own”full-featured smart contract language” that works with bitcoin using embedded consensus, and that was built from the ground up to be transferable to other blockchains.
“We have a smart securities system, it’s a layer on top of bitcoin, it encodes execution data and publication data in transactions, publishing to the blockchain, so all the data is on the bitcoin blockchain,” Krellenstein said.