Jeremy Schwartz, CFA, Director of Research, WisdomTree Asset Management
On a recent Behind the Markets podcast, we had an interesting conversation with Syed Hussain, Chief Commercial Officer for BANKEX, surrounding blockchain technology and the infrastructure for the blockchain space.
BANKEX strives to bring the capital markets onto the blockchain—and they are trying to partner with financial firms in these efforts. The BANKEX website describes their platform as “Securitization 2.0” for providing a new operating system for the capital markets.
Hussain discussed the parallels between companies going on the Internet with those going onto the blockchain. At first, many companies resisted going on the Internet when it first came out.
They would often start with internal communications and intranets for exchanging information before branching out to wider networks. Hussain sees private blockchains as a starting point for banks before they go more broad and public.
We also discussed the opportunities for securitization and the challenges from Securitization 1.0—which was associated with the financial crisis and the packaging and distribution of mortgage securities.
BANKEX has a number of interesting platforms.
One is trying to disrupt Hollywood financing and the full infrastructure around movies—trying to democratize what is today privileged access to participation in investing in movies and entertainment.
Hussain also emphasized how for BANKEX this is about much more than raising capital for movies but also about streamlining and making the contract process more efficient. He kept coming back to the backbone and infrastructure improvements that are likely to come.
Hussain also discussed the implications for the real estate markets as one of the most opaque markets for contracts and titling—where he thinks the blockchain can dramatically transform the marketplace.
This was our first in-depth conversation on the blockchain on our “Behind the Markets” podcast, and we are grateful to Syed Hussain for spending time with us on this topic. Please listen to the full conversation below.
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About the Author: Jeremy Schwartz, CFA, Director of Research, WisdomTree Asset Management is responsible for the WisdomTree equity index construction process and oversees research across the WisdomTree family. Prior to joining WisdomTree, Jeremy was Professor Jeremy Siegel’s head research assistant and helped with the research and writing of Stocks for the Long Run and The Future for Investors. He is also co-author of the Financial Analysts Journal paper “What Happened to the Original Stocks in the S&P 500?” Jeremy is a graduate of The Wharton School of the University of Pennsylvania and currently stays involved with Wharton by hosting the Wharton Business Radio program “Behind the Markets” on SiriusXM 111.
- WisdomTree Asset Management, Inc. (“WisdomTree”) launched its first Exchange Traded Funds (ETFs) in June of 2006, and is currently one of the largest Exchange Traded Product (ETP) sponsor globally. WisdomTree offers Exchange Traded Products (ETPs) covering domestic, international and global equities, fixed income, currencies, commodities and alternative strategies. WisdomTree pioneered the concept of fundamentally weighted ETFs and active ETFs and is currently an industry leader in both categories (as measured by assets under management). WisdomTree is the only publicly traded asset manager exclusively focused on the ETP industry. WisdomTree is listed on the NASDAQ Global Market under the ticker: WETF.