It all started when I tried to do it myself, and I say this is a really cool opportunity. We can tokenize an existing asset of some kind. I had a private equity fund, and halfway through the process I said wow, this really sucks. We need to find a better way. But it all started with kind of the prediction that the next megatrend in crypto will be assets migrating to the blockchain in the form of tokens.
So real estate bonds, private equity, pretty much any security is better denominated as a token than it is as traditional forms of ownership like stocks, LP shares, units. This is the future not share certificates in filing cabinets. And we're excited to be at the forefront of this movement.
We see ourselves as problem solvers, and we see the process of launching a security token as broken. It's very challenging, it's expensive, it's time-consuming. And all we're trying to do is streamline the process so anybody can do it not just the developers.
I think it's more important to think about the existing capital markets infrastructure. That's that were that's our competition. It's not blockchain stuff, it's like investment banks, broker, dealers, stock exchanges like that's what we're trying to decentralize. So for me it's about looking at just like what Bitcoin did with payments how it streamlined the process. It got rid of unnecessary middlemen like payment processors, clearing houses, settlement banks, foreign exchange.
All these institutions in-between me, and you are not needed, and we all save money, and we all have a better experience because of it. We think at Polymath that the same principle applies to the broader capital markets. That there's a lot of inefficiencies, and it's time that we mitigated those, and started to think about tokenizing the security market.
We kind of officially unveiled Matador with our shiny new logo this week at this event, and it's really a more traditional type advisory. And even though we're very focused on the future, and on new decentralized protocols we also think you're gonna need some human elements to help launch kind of complicated structures, and entities on the blockchain.
So for me block rather Matador is the, a leading advisory business that's gonna help white-glove, and handhold really high quality issuers to launch on the blockchain, and specifically on our platform. So we're gonna help businesses that are interested in getting on Polymath we're gonna make it super easy for them. And we're just working really hard to make the processes as seamless, and elegant as possible, and the scale will come.
And we have already have pretty much unlimited demand from the marketplace right now. So we're just trying to let the dust settle a bit from all the new developments in the community, and for yeah, for us it's a land grab. We wanna be the first mover. We wanna build a network effect before anybody else. And we just have to be really aggressive, and bold to do so.
We're very excited to be in the process of launching a security token venture fund. It's the world's first. None other exists that are dedicated to this asset class.
We'd expect nothing else.
Yeah, you might as well create multiple new things at once, right?
Trevor Koverko: And, but we're looking for existing experts. We're looking for general partners, limited partners who do this for a living. And yeah, the search is on. We're looking for some awesome partners to build kind of a one to 200 million dollar venture fund in securities tokens.
We think that's the biggest opportunity right now is the emerging asset class of security tokens. And we have the benefit of seeing all the best deal float.
Yes, I guess you do.
So instead of just being the service we'd like to be partners with a lot of our inventory, that we're seeing coming online. Bitcoin was an amazing technology. It sent shock waves through the financial world, but it wasn't built for new projects. That's not what the whitepaper that Satoshi designed was not for new tokens. It was for the Bitcoin, and the blockchain, and that's it.
And then the Vitala came along, and I was very, very fortunate to be in Toronto when this all happened, and to be pretty close to the project. He said we can streamline this process. We can make it so anybody can use what he coined the scripting language within the Ethereum protocol, which made it easy for anybody to launch an ICO. And then if you look at kind of the market cap of tokens, and the demand it's just like a hockey stick-
In the chart. So for us we want to do the exact same thing for this market. We see a lot of similarities between the 20 14 utility token market, and the 20 18 security token market. We have some linear growth. We have a few projects that have kind of come out of the gate, and we just wanna pour gasoline on this entire asset class. By the end of this year security tokens will have eclipsed utility tokens in the market cap.
And it's not gonna take, it's gonna take one major fund like a hedge fund, a sovereign wealth fund to tokenize, and it could double the entire securities open market overnight.
The right sovereign wealth fund yes, [crosstalk 00:05:05].
So yeah, and look it's going to be a process, it's not going to be overnight. It's a lot more nuanced, and complex to launch a security token, and there's not as much upside in a lot of them 'cause it's backed by a real tangible asset, that you can value, and there's metrics for. But in terms of scale, in terms of tapping into the trillions of dollars of institutional money, of pension funds, of endowment funds they all are looking for new exciting asset classes to invest in, and I think crypto's one of them.
There's lots of land mines in this asset class. There's some security risk, there's regulatory risk, there's execution risk I think that's the biggest one is just having the right entrepreneurs focus on the right problems. And that's what's exciting it's still uncertain in a lot of ways, it's still developing, and that's kind of right in my natural habitat.
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