It’s no secret that Patrick M. Byrne, the CEO of Overstock.com is a major fan of security tokens. In a recent letter to shareholders of the company, he laid out his case for the best possible outcome.
Patrick M. Byrne, the CEO of Overstock.com, has long been a supporter of security tokens, having spoken about them at length at multiple conferences and interviews. He is also the chairman of tZERO, a security token platform.
Recently, however, Byrne has decided to take his support straight to the investors in his original company, Overstock.com. In the letter, he argues his case for security tokens and why they will be crucial for the future of finance.
“100% of the stock and bonds on Wall Street token could be tokenized, and in five years 100% of the stocks and bonds on Wall Street will be tokenized,” he writes. Moreoever, he makes the case that those exchanges which trade tokenized securities have a lot to gain from the industry’s growth.
“If those $500 trillion in assets get tokenized, and if the exchanges that trade the tokens follow the 0.18% valuation rule, then the value of security exchanges globally will be $500 trillion x 0.18% = $ 900 billion.”
Of course, Byrne knows that nothing is certain. “I do not know what the value of security token exchanges is going to be in five years. But the arithmetic looks pretty compelling,” he admits.
Overall, Byrne is hoping to turn on his stakeholders to the promise of security tokens. Many of his recent ventures, including tZero and Medici Ventures, have been towards solidying his role in the emerging industry.
Byrne is betting big on security tokens, and he hopes his shareholders share his optimism and join him.
Do you think Byrne is overselling security tokens or are we really due for an explosion in the next 5 years? Let us know your thoughts below.
Image courtesy of StarterNoise.