3 ms·
It's a big deal imo, but a major blow for Bitcoin, because it's nowhere to be seen. Have you ever purchased a bond? Ever wanted to sell one on the secondary ma
by legolassexyman 9y ago
It's a big deal imo, but a major blow for Bitcoin, because it's nowhere to be seen.
Have you ever purchased a bond? Ever wanted to sell one on the secondary market? Ever heard of the Securities Transfer Agents Medallion Program? You will if you try to trade bonds in the conventional way, which is a huge pain in the ass.
There is a lot of room for improvement by implementing the blockchain.
- harryh 9y agoWhat happens when I buy a bond and then I accidentally lose my private key?
- legolassexyman 9y agoI don't think JP Morgan is going to give you the private key to your bond. This is a slightly more decentralized version of holding securities in street name. It's less painful than direct registration, it's publicly auditable, and faster to settle.
- harryh 9y agoWhat happens when JP Morgan loses my private key? I mean, I hear you. I 100% get why people are interested. I just don't see why it has to be a blockchain vs a centralized database that DTCC controls access to.
- justonepost 9y agoDatabases are notoriously insecure.
- harryh 9y agoDatabases store all the money for basically everyone in the developed world. They seem to be working ok.
- tgjsrkghruksd 9y agoAs opposed to bitcoin, where nobody has ever lost money ever.
- deleted 9y ago[deleted]
- justonepost 9y agoWhy not? Transactions will still be manually verified of course, but a private key is a pretty good signal that it was valid.
- justonepost 9y agoIt's not anonymous, so you just prove who you are.
- harryh 9y agoTo who? It's a de-centralized database.
- justonepost 9y agoYes, but you have to associate identity with your public key. This is for bonds, not buying drugs. Just transfer bonds into a new key pair. A costly hassle I am sure. Don't lose your key!
- harryh 9y agoYes, yes. To who am I going to prove my identity though? There's no one that, once I've done that, can go into the blockchain and fix things up. This is why there are so many lost bitcoins that are 100% unrecoverable.
- deleted 9y ago[deleted]
- toomuchtodo 9y agoThere are safeguards in place that must survive the rigors of external auditors.
- harryh 9y agoAnd if those systems fail (as all systems will fail at some point) then....my bond is just gone? Poof? Like all those lost bitcoins.
- deleted 9y ago[deleted]
- toomuchtodo 9y agoI can't respond to this without violating an NDA. Sorry.
- harryh 9y agoEh. Bummer. I could totally be wrong about this, and I'm super curious since a lot of smart people seem to be into it. I just don't see the reasoning behind things. Thanks for sharing what you could!
- deleted 9y ago[deleted]
- tgjsrkghruksd 9y ago> I'm super curious since a lot of smart people seem to be into it. Because trendy buzz.
- krrrh 9y agoThere are a lot of reasons that bearer bonds are no longer issued in most jurisdictions. This is one of them. https://en.m.wikipedia.org/wiki/Bearer_bond https://en.m.wikipedia.org/wiki/Bearer_bond
- atomical 9y agoThey will use a private net so it's irrelevant to Bitcoin or Ethereum.
- tgjsrkghruksd 9y ago> You will if you try to trade bonds in the conventional way, which is a huge pain in the ass. And that's a bunch of horsecrap. Do you buy stocks in your name too? No. Ordinary investors hold securities in street name with a brokerage. I've bought corporates through Vanguard Brokerage Services, which actually doesn't have a great reputation for being friendly to buying individual securities. It's a click of the mouse and $2 per $1K face or half that if you have a large account. You can also call up the fixed income desk and do it over the phone. No problems.