Post by 21X

𝗪𝗵𝗮𝘁 𝗶𝗳 𝘆𝗼𝘂 𝗰𝗼𝘂𝗹𝗱 𝗴𝗲𝘁 𝗳𝘂𝗻𝗱 𝗲𝘅𝗽𝗼𝘀𝘂𝗿𝗲 𝗼𝗻-𝗰𝗵𝗮𝗶𝗻 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗿𝗲𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗲𝗻𝘁𝗶𝗿𝗲 𝗳𝘂𝗻𝗱? In the recently published third part of our series on tokenized securities, we looked at why tokenized fund shares are not automatically DeFi-ready. The solution? Create a digital twin.   Native tokenization of fund shares forces change everywhere: The fund itself, the transfer agent's register, the custodian's systems. ̶F̶r̶i̶c̶t̶i̶o̶n̶.̶ ̶C̶o̶s̶t̶.̶ ̶R̶i̶s̶k̶. So most funds stay off-chain.   But there's another route. A digital twin doesn't tokenize the fund share. It creates a separate instrument – sitting one layer above – that mirrors the fund's economic exposure perfectly. ► The fund stays unchanged. ► The transfer agent stays unchanged. ► The custodian stays unchanged.   And everything happens on-chain. Distribution happens on-chain. Price discovery happens on-chain.   Different architecture. Same outcome. Lower friction.   This is the beauty of digital twins. They unlock on-chain fund distribution for institutions that can't or won't – or, indeed, don’t feel the need to - rebuild from scratch.   To read the full article on tokenized securities, click the link in comments.   #DigitalTwins #TokenizedSecurities #RWAs #FundDistribution #OnChainSettlement #21X