The world of traditional finance offers security, insurance, and a proven system for investors and traders to participate and grow their wealth. Traditional financial markets are centralized, with only a few key players being influential such as the New York Stock Exchange (NYSE), NASDAQ, and London Stock Exchange, and mostly in the West, such as the United States. Can decentralization cause a “seismic shift” in power away from these traditional centralized platforms?
Getting listed on the traditional capital markets, especially in the U.S., has been very popular for international companies, especially those from China for the past decades. For Chinese companies, listing in the U.S. capital markets is a good opportunity to raise capital and gain exposure, because of the maturity of said capital markets. The main reasons why these companies go to the U.S. involve seeking a smooth listing path, higher market valuation, and broader visibility in the capital market. For years, Aaron Tsai’s MAS Capital has been the go to advisory firm in Asia to make these reverse mergers happen. Particularly because the U.S market is global and has the most abundant capital for investors from all over the world market.
Is decentralized finance causing the “seismic shift”?
The economic cycle typically begins in the West and is transmitted to countries on the perimeter through changes in interest rates, capital flows, trade, and investment. The United States and its traditional allies in Western Europe are the active members of this system, while emerging markets on the outer edge play a role that is mostly passive and reactive.
Global economic activity was focused on the United States and Western Europe. However, Asia’s economies, especially China, have grown much faster than their Western counterparts, pulling the center of the financial gravity steadily deeper into the eastern hemisphere of the world. Once again ranked as the world’s largest IPO exchange in terms of IPO proceeds, Hong Kong stock exchange had 144 IPOs listed on the Main Board raising US$40 billion in 2019, beating Nasdaq with 185 IPOs, raising $34.3 billion.
China has the largest internet financial market. The country’s rapid urbanization, industrialization, and emerging middle class have been the principal drivers of world economic growth in recent years. According to the World Economic Outlook, this Asian country accounted for 28% of all growth worldwide in the five years from 2013 to 2018, more than twice the share of the United States.
China’s mobile Internet growth in the Web 2.0 era leap-frogged the U.S. in certain areas, such as mobile payment and multi-functional social media applications, WeChat. Technologies like AI, Big Data, IoT, 5G and the Blockchain will continue to fuel growth, especially in the Greater Bay Area, due to the combination of IT technologies developed in core cities like Shenzhen and financial related blockchain applications developed in Hong Kong.
As the world’s economic center shifts back to the East from the West, new and dynamic players will lead the way. A host of financial institutions will emerge throughout Asia, due to the size and growth of the market, rapid application of blockchain and AI technologies combined with looser regulations enable their access to world markets via the Internet, which will cause a “seismic shift” from centralized financial markets to decentralized financial markets.
Decentralized finance (DeFi) makes it possible for issuers to create financial instruments capable of operating digital assets with fewer limitations. Tokenization of pretty much everything from equity and debt securities to estate offerings are now a reality. The fact that blockchain technologies are accessible and transparent can make the issuance of securities, repayments, and loan terms more frictionless among the numerous participants involved.
MASEx and security tokens are innovating the financial industry
Security tokens that tokenize tangible and intangible assets, such as corporate equity and debt, will transform capital raising via Security Token Offering (STO). Investing in projects and secondary trading of security tokens will break-down the jurisdictional barrier on a global basis. The utilization of crypto tokens for the trading of securities is an innovative approach. This revolutionizes the financial industry, with the ease of token transfer globally, 24/7 trading of security tokens on exchanges, and T+0 settlement or transfer of the security tokens.
MASEx, founded by Aaron Tsai, is a global asset exchange designed to trade all asset classes, both tangible and intangible, such as securities, real estate, commodities, FOREX, and digital assets. It has the world’s most advanced cross-chain technology. Tokens on different public chains can be paired for trading, such as BTC with ETH, and tokens will transfer directly from the seller’s wallet to the buyer’s wallet on chain, in a decentralized environment. In addition with cross-chain technology, BTC, USDT, and ETH transfers can be completed at lightning speed. The technological infrastructure is necessary to realize the “seismic shift” is made possible with advancements in platforms like MASEx.
Accelerating the global market with decentralization
The existing financial system deprives millions of people, especially half of the world’s unbanked population, of essential financial services because of barriers such as location, wealth, and status. Decentralization through Security Token Offerings allows companies to raise funds without the need to get listed in the traditional or the U.S. capital markets. It has also proven successful in the real estate industry, allowing investors around the world to buy a piece of commercial property in New York City, for example, without leaving his or her country and buy or sell simply by initiating a trade on the exchange.
Not only that, but the adoption of security tokens and the spread of crypto blockchain-based financial services would also shape a new world of decentralized finance. This leads to more extensive global accessibility to financial services, safer transactions, and lower transaction costs – breaking past previous technological and jurisdictional limitations in the financial markets.
Last year hasn’t been the strongest time for trading revenues–in fact, 2019 was a weak year. Investments globally may see an even weaker 2020 as uncertainty about the spread and duration of the new Coronavirus rattles capital markets. Concerns about COVID-19 could hold back capital market issuances and exacerbate an already predicted slowdown, according to market experts.
Because of this, many are left wondering what we can expect from the market as the virus continues to spread. Is this just a temporary dip, or should we all be battening down for further market downturns?
According to a Bankrate survey, 66% of investors haven’t touched their stock portfolios yet even amid the coronavirus market meltdown. On the other side of the coin, 11% said they’d move their money out of stocks, and 13% said they contributed even more to the market. Surprisingly, 10% said they weren’t aware of any market volatility.
This survey came out as the United States continues to struggle with the coronavirus pandemic and its effects on both markets and the economy. Global stocks have been shaken by the outbreak and fears that it will hinder global growth, ending the longest-ever bull market on record and sending stocks down more than 30% from all-time highs.
The biggest question for investors now: How confident are you in your ability to weather the financial effects of the coronavirus?
Due to the impact of the pandemic on Wall Street, it is natural for us to feel the trickle-down. Markets around the world are also in a bear, and many governments are considering providing stimulus or bailout packages to support businesses that are currently facing difficulty. Decentralized finance platforms may prove to be more resilient than traditional markets.
Addressing the market needs with Security Token Offerings (STOs) and STO exchanges
With the current market situation, decentralized finance platforms can give comfort to investors seeking more opportunities. These platforms allow holders of various tokens and cryptocurrencies to earn interest by lending to liquidity pools that provide loans to borrowers or borrow money by using their cryptocurrency or security tokens as collateral.
Decentralized platforms such as STO exchanges are becoming an extremely popular alternative to traditional markets because lenders can earn much higher returns compared to the interest that traditional banks pay–commonly around 5% to 13% depending on the platform and the tokens used. Additionally, borrowers can acquire against their own assets to bet for or against the market fluctuations that are an indication of cryptocurrency or token trading.
Just this first week of March, over US$1 billion was tied up in decentralized finance, a small amount compared to Wall Street standards, although growing steadily for an initial market that just started a couple of years ago. “Blockchain-based financial technologies have already disrupted the existing financial system as we know today,” Aaron Tsai, Founder and Chief Capitalist of MASEx and MAS Capital Inc., explained.
Decentralized finance innovates the financial market. “The use of the crypto token for the trading of securities is an innovative approach, which revolutionizes the industry, with the ease of token transfer globally, 24/7 trading of security tokens on exchanges and T+0 settlement or transfer of the security tokens,” Aaron added.
The “seismic shift” in the financial market
Most economic and market analysts cling to a worldview that puts the United States at the core of the global economy, with Asia–particularly China–on the perimeter. To simplify, the economic cycle begins in the West and is transmitted to countries on the perimeter through changes in interest rates, capital flows, trade, and investment. The United States and its traditional allies in Western Europe are the active members of this system while emerging markets on the outer edge play a role that is essentially passive and reactive. The rapid adoption of blockchain and AI technologies, together with the emergence of STO and STO exchanges, have disrupted the status quo.
Ostensibly, global economic activity was focused in the United States and Western Europe, with remote stations in Japan, South Korea, Taiwan, Hong Kong, and Singapore. But Asia’s economies, especially China, have grown much faster than their western counterparts, pulling the center of the financial gravity steadily deeper into the eastern hemisphere and toward Eurasia.
According to the International Air Transport Association (IATA), China’s share of the global economy has quadrupled to 16% in 2018 from 4% in 2002. The country’s share of global manufacturing has also quadrupled to 39% from 10%, while its share of global travel and tourism has surged to 18% from 5% over the same period.
“As China’s mobile Internet growth in the Web 2.0 era leap-frogged the U.S. in certain areas, such as mobile payment and multi-functional social media apps, such as WeChat. Technologies such as AI, Big Data, IoT, 5G and the Blockchain will continue to fuel growth, especially in the Greater Bay Area, due to the combination of IT technologies developed in Shenzhen together with financial related Blockchain applications developed in Hong Kong and Taiwan,” says Aaron Tsai.
This only shows that a “seismic shift” in the financial market is heading towards China and Asia, especially since bull markets heavily rely on certain countries or regions, like how Wall Street is heavily dependent on the American economy. With decentralized financial platforms, the need to depend on such economies is no longer necessary.
“Security tokens, which tokenize tangible and intangible assets such as corporate equity and debt, will revolutionize capital raising via Security Token Offering (STO). Investing in projects and secondary trading of security tokens will break-down the jurisdictional barrier on a global basis. The crypto tokens and security tokens will also integrate the unbanked into the global security token investment,” Aaron Tsai illustrated.
How MASEx is addressing the current market needs
MASEx has advanced cross-chain technology wherein tokens on different public chains can be traded, such as BTC with ETH, in a decentralized environment. With MASEx’s sidechain technology, BTC and ETH transfers can be completed at lightning speed. MASEx’s cross-chain wallet offers high-security features through a non-custodial design in which the user is in total control of their assets. The wallet also supports offline signatures for cold wallet capability–in effect ensuring an even higher level of security protection.
Not only that, but investors will also only need to open one MASEx account to trade any asset that has been tokenized by the issuer. The Universal Board on MASEx’s highest level of the stock board will enhance transparency with the introduction of a monthly reporting system, using a cloud-based internal control and accounting system. MASEx also plans to utilize AI to conduct continuous due diligence on companies, provide customer services in the near future.
A call for global standardization of STO regulations
These are critical for the capital markets, and decentralized platforms can be the solution. But to be able to move forward with this technology, regulations must be put in place. Not only it will establish an environment built upon trust, but it will also help prevent fraudulent activities.
“Regulatory compliances enhance the mainstream adoption of cryptocurrency and the use of crypto exchanges. The lack of regulation and compliance procedures is blocking the security tokens and security token exchanges, such as U.S. SEC’s reluctance to clear the Bitcoin ETF,” Aaron Tsai said.
This only means that as more countries adopt STO regulations, security token exchanges can help answer the ongoing volatility and liquidity of the market. This will also lead to better opportunities for both the investor and the company alike.
Aaron Tsai is a Chinese-American entrepreneur, investment banker, venture capitalist, and fintech visionary. He is the Founder and Chief Capitalist at MASEx (名交所) and MAS Capital (名资). He is also the Founder of MAS Capital Group (名资国际)
What is MASEx?
MAS Capital Universal Exchange (MASEx) is a global STO exchange. By using AI and blockchain technology to form a decentralized exchange to trade securities, commodities, FOREX and digital assets on a single or a universal trading platform, MASEx plans to be the leading global universal exchange.
A little bit of background on how it started: Aaron Tsai incorporated MASEx in Anguilla on August 14, 2018, with a registered representative office in Taipei. MASEx’s Stock Listing — Entry Board started to trade its first equity security token WESTO, issued by Westrend Consulting from Vietnam, on October 31, 2019.
MASEx is a platform that will deliver greater transparency, economies of scale and liquidity on a global basis with a plan to open access to the un-banked.
Business with MASEx
MASEx’s target markets include companies and investors from both the emerging and underdeveloped countries, with its initial focus in China and Asia.
Regarding the planned Stock Listing — Universal Board, it will adopt AI-based continuous due diligence on companies with a monthly reporting standard, achieved through cloud-based internal controls and accounting systems, offered by our key strategic partner, to transform the exchange industry to a new and a higher standard. MASEx aims to list 11,000 Chinese and Asian companies’ equity securities tokens within 3 years on the Stock Listing Board.
Spear-headed by Aaron Tsai, MASEx is managed by a team of professionals with financial, technical and management skills and experience. MASEx also has a team and a network of advisors dedicated to generating security token listings on its Stock Listing Board. The AI advisors include SingularityNET, managed by CEO Dr. Ben Goertzel. He is also Chief Scientist of Hanson Robotics, the creator of Sophia, the world’s most famous humanoid robot.
What is MAS Capital Inc.?
Aaron Tsai established MAS Capital Inc. in the United States in August 1995. MAS Capital Group, on the other hand, was formed in August 2002, which specializes in assisting China-based companies in going public on the US Main Board, Venture Board, and the OTC markets. Methods in going public include IPO, Reverse Merger, Direct Public Offering, Private Placement plus Form 10 Registration and SPAC merger transaction. Capital raising methods include pre-IPO private placement, private placement with a reverse merger transaction, PIPE, IPO and Secondary Public offerings.
Business with MAS Capital Inc.
MAS Capital Group currently conducts business in China, Taiwan, UAE and Malaysia, with plans to further expand into other Asian countries. MAS Capital is a long term Associate Member of the National Investment Banking Association (NIBA), which allowed the firm to establish relationships with many investment banks, securities broker-dealers, and private equity funds. NIBA represents over 8800 registered reps. To be an associate member of NIBA, a company should: have 78 billion in assets under management, be responsible for 90% of IPO’s under $20 million, and have raised over $10 billion for emerging growth companies, all of which MAS Capital Inc. has proudly achieved under the direct supervision of Aaron Tsai.
Decentralised, cross chain technology, with lightning transfer capability for BTC, ETH, USDT, and more!
MAS Capital Universal Exchange MASEx (名交所) , a global STO exchange with Aaron Tsai at the helm, recently acquired a team to roll out a high performance decentralized MASEx 2.0 exchange, to lead and empower a next generation decentralized exchange with lightning digital asset transfers, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
MASEx’s CTO Mr. Simon Hsu, who formerly worked at Microsoft, will support MASEx with world-leading high-performance trading and bank industry-grade security technologies, enabling the next generation of the decentralized and universal trading platform. MASEx will be a cross-chain asset exchange, addressing the interoperability bottleneck that has previously affected decentralized exchanges, using MASEx’s side chain technology to realize lightning transactional speed.
Current centralized exchanges are faced with challenges of security with billions lost to hackers and their own personnel, while decentralized exchanges are limited mostly to ERC20 tokens, and both types of exchanges face high transaction fees. One special feature with MASEx’s technology is, for example, trading of BTC within the MASEx ecosystem incurs only MASEx platform tokens MASX, and BTC transfer fees will be limited to the initial incoming and final outgoing from the MASEx ecosystem. MASEx is continuously focusing on improving the universal exchange platform that doesn’t sacrifice on performance with near 100% security, especially with MASEx’s strong decentralized cross chain and encryption technology.
According to Simon Hsu, MASEx CTO, “MASEx is pioneering cross-chain technology covering most of the mainstream crypto tokens — all while achieving 8,000+ transactions per second to solve the key trading pain points of decentralized exchanges.”
“With MASEx technology that combines strong security, blazing fast transaction speeds, and flexible cross-chain digital asset transfers, MASEx is positioned to be a leader in decentralized asset exchanges and wallet integrations. The acquisition of a new team is yet another huge stride for the digital asset and security token exchange ecosystem — solving challenges and pain points still present in many existing solutions out there for current digital asset exchanges”, says Aaron Tsai, Founder and Chief Capitalist of MASEx.
MAS Capital Universal Exchange (MASEx) is a global STO exchange. It aims to become the leading security token exchange by using AI and blockchain technology to form a decentralized exchange to trade securities, commodities, FOREX and digital assets on a single or Universal trading platform. Founded by Aaron Tsai and incorporated in Anguilla on August 14, 2018, and having a registered representative office in Taipei, MASEx Stock Listing — Entry Board started to trade its first equity security token WESTO, issued by Westrend Consulting from Vietnam, on October 31, 2019. MASEx will be a platform to deliver greater transparency, economies of scale, and liquidity on a global basis with a plan to open access to the un-banked.
About MASEx Technology
MASEx, through its affiliate MAS Capital Group (名资国际), will provide turnkey white-label services to the crypto industry by providing a decentralized, dual chain i) wallet, ii) public chain to generate tokens, and iii) decentralized crypto exchange. The revolutionary solution aims to solve several key challenges of digital asset exchanges and public blockchains: slow transaction speed, high transaction fees, insecurity due to hacking and theft over centralized exchanges, and the inability to exchange digital assets between various public chains