Symbiont announced its plans to issue its first private equity shares as a 'smart security' as soon as next month. By releasing a smart security that represents their own shares, Symbiont will demonstrate the potential for the trading and issuing of these types of financial instruments on the blockchain. The company, which is a merger between start-up MathMoneyf(x) and Counterparty, will offer these programmable securities on the Bitcoin Blockchain.
Symbiont CEO and co-founder Mark Smith explained that "We joined up to develop a generic platform that allows users to create, issue, manage, trade and clear and settle financial instruments using digital contracts on a blockchain. We are using the open source bitcoin blockchain at the moment, but the platform is blockchain agnostic so will be able to work with future blockchains."
Issuing 'smart securities' through the blockchain can have several advantages to the current financial infrastructure, namely in reducing settlement times for financial instruments. The currency settlement time for securities is T+3, meaning it takes three full business days for the trading of securities to settle between parties. By utilizing the Blockchain's ability to reduce counterparty risk in the trading and exchange of items with immutable value, the time for settlement to finalize can be drastically reduced to under a day, if not sooner.
Overstock recently revealed their plans for Medici, a similar platform utilizing the blockchain to issue private securities and reduce settlement times. They have named their technology TØ.com in reference to the time settlement can finalize on the blockchain (T+0 days).
Symbiont recently locked down $1.25M in seed funding, and a Series A funding round is planned to occur later this year. Mark Smith claims that more than 50% of top tier financial institutions on Wall Street already have teams tasked to understand smart security and blockchain tech.