How Tokenized Assets are Traded

Project: Research

Project Details

Description

Though the technology and practice of tokenization are nascent, its theoretical benefits include: efficiency gains driven by automation and disintermediation; transparency; improved liquidity potential and tradability of both liquid and illiquid assets; and faster and more efficient clearing and settlement. Such tokenization suggests a reconsideration of core financial market activities, from trading, pricing and liquidity of securities, to processes such as clearing and settlement. Just as cryptocurrencies rose to prominence as the payment infrastructure for dark-net marketplaces (Foley et al. 2019), before the disruptive benefits of tokenization can be realized, it is necessary to have in place the market
infrastructure to support it. This infrastructure is what is currently evolving and form the focus of this study.
I will examine emerging Automated Market Maker exchange structures, and compare them with existing limit orderbook markets.
Short title$6,000 over 1 year
AcronymAFAANZ $6,000
StatusActive
Effective start/end date1/08/2131/07/22