CDRX Exchange Looks To Popularize Crypto Depository Receipts (CDRs) To Aid In Debt And Equity Settlement
The Crypto Depository Receipts Could Be the Needed Change in Debt and Equity Settlement
Many individuals are not aware what the Crypto Depository Receipt, CDR, actually does. Most of the big names you find in the crypto market work on the CDR platforms, which could be creating some significant changes taking place in the finical market.
Among the companies that are working on the platform is CDRX, they are working on ways they could popularize the CDRs plus also be in a position to create some new levels of efficiency and safety in the settlement technology.
The other platform to look out for is Coinbase, as it could also move in the same direction as the CDRX. At TechCrunch Disrupt that was in San Francisco, in a recent presentation the CEO of Coinbase Brian Armstrong, went ahead to expound more on the crypto. He explained further as to why the crypto market could be the next big thing that we will see in the world of financial transfers.
He went ahead to state that the Web 1.0 was focused on the publication of information, web 2.0 was more about the interactions that take place. So when we get to web 3.0 it will be more on value transfer that is taking place on the internet, the reason being, the web has now this native currency; thus, the applications can be built instantly by just tapping into the global economy taking place on the internet.
The CDRX Has a Very Bold Vision
Like most aspects that are existing in the financial system, settling trades that are taking place in the stock market is not as efficient as we would like it to be.
This is where the CDRs comes into play as it is able to address one of the inefficiencies that are being faced in corporations around the world. When an investor purchases some shares the exchange is only responsible for the current trade to be settled, plus the money that has been paid to turn into shares. Once the shares have been owned all the corporate businesses have to get handled.
With the use of CDR, it will make things to be much more comfortable, this is instead of holding public meetings and have various accountants distribute the dividends, the CDR will be able to make most of these corporate responsibilities to be automatic. With the use of a smart contract it will be able to put out the dividends, and with the online voting, it will be able to save large sums of money annually for the shareholders.
There Could Be Easier Trading Taking Place Across the Board
All year the market has been under pressure, but it is clear that the crypto market is here to stay. Thus, with the use of CDRs it could be used in the trade of crypto's safely, plus be in a position to offer a level of security that no other unregulated exchanges are able to match and provide its users.
The way a bond or just a stock in the market is able to be converted to CDR, now it is possible for the crypto to follow the same path, thus making it tradeable through the CDR.
The CEO of CDRX, David Ward went ahead to say that with the creation of the CDR product, they took the time to speak to the investors, regulators, and issuers in the market to discuss the various frustrations they might be facing in the traditional market. He goes ahead to say that they are at the forefront of the developments that we see, unlike the other securitized token models that investors have been accustomed to.
He also states that the approach the company has taken will leverage a proven route to the securitization which will be able to allow immediate conversion to take place within the market, all this following the regulatory approval.
The CDRs could still be in their infancy, just like any other blockchain space; thus the adoption of the concept might lag, but yet a good option for investors to look into.