Shareholder Daniel Alter of our FinTech & Blockchain Practice details why the recent New York State Department of Financial Services’ approval of the issuance, sale, and trading of a tokenized ownership interest in gold bars by Paxos in a significant regulatory milestone in an expert analysis article he wrote for The WLF Legal Pulse.
In the article, Mr. Alter cautions, “For this venture to grow and succeed on the blockchain, however, both Paxos and DFS will need to address a mountain of issues common to trade in other asset classes.” He cites the importance of establishing well-defined clearing and settlement procedures and securing adequate custody solutions for traded assets, for instance.
Mr. Alter is a former General Counsel of the New York State Department of Financial Services, and he is a featured contributor for Blockchain & Cryptocurrency for The WLF Legal Pulse. The Washington Legal Foundation publishes The WLF Legal Pulse.
To read the full article, click here: https://www.wlf.org/2019/09/18/wlf-legal-pulse/the-golden-use-case-the-intrinsic-value-of-tokenized-precious-metals-for-financial-regulators/.