Adam Blumberg

Pat O’Meara of Inveniam Capital Partners

July 7, 2020 - 56 Mins

In this podcast, we chat with Pat’O Meara, the chairman, and CEO of Inveniam Capital Partners, which in his words, ‘provides data, integrity, and mechanisms for price discovery for assets, around the private markets as they get deemed material into a digital environment.’

Assets are vastly different now as they were a decade ago. While stocks are still stocks, and bonds are still bonds, they’ve gone from being represented as a scrip to dematerialized in your brokerage account. Through digital wallets, you can hold stocks, bonds, gold contracts, and even cryptocurrencies.

One of the main hurdles in this transformation was the question of ‘trust.’ Can an investor trust an application that states they own certain assets, the same way they trust a physical asset certificate? This is the same principle that is driving, slowly but surely, the case of tokenizing real-world assets, where it’s not just intangible assets like stocks and bonds that can be digitized, but tangible assets like real estate and art in the form of tokens on the blockchain.

Pat talks about the liquidity of these assets, the premium attached to their digital form, the trust imparted to investors, the fear of digitization, the size and scale of the future expansion of the model, their price discovery, and its overall functionality. These are the building blocks for real-world tokenization told by a veteran in the field of asset digitization.

From a practical point of view, tokenization increases the market size but decreases the market number. From several local markets catering to local companies, you’ll have one massive market connected via the internet, and potentially on the blockchain, where the token would represent all the data regarding ownership change, price change, volume change, and more.

He also alludes to the practical used-case of real-world digitized assets during the infamous 2008 financial crash. Could tokens on the blockchain be used to bypass the banks which packaged and repackaged debt obligations making the crisis worse than it was? Could a data oracle help relay information on the ability of debtors to actually pay back the debt, and prevent the system from crashing? Could the transparency of smart contracts, allow immediate payments, and avoid loopholes?

We often talk about the building blocks for the decentralized financial world, representing assets digitally is right up there. This is the start of transferring value on-chain and Pat lays out the necessary infrastructure that is required for this transition.

If you had any of these questions, this podcast is for you!

  • What are tokenized assets?
  • What kind of assets can be tokenized?
  • How will these assets be transferred?
  • Can we trust them?
  • Do these assets even have liquidity?
  • How does price discovery work for these assets?
  • Where does the tokenization of assets fit into the DeFi world?

Enjoy the podcast!