While the Hybrid Stock Exchange white labelled software is still under negotiations, we would like to share the latest news with you on having successfully created a convenient and modern solution to the current global custodian share process.
Presently, in order to convert shares from a physical certificate into a digital form, the issuer has to go through a bank. The bank sends the certificate to the chosen stock exchange and the stock exchange issues new digital shares that interact with the financial systems in place. This process makes it possible for you to deposit the shares into a bank account but includes third party involvement that comes with additional fees and costs.
The HYBSE team has accomplished the removal of such third-party involvement and, therefore, the additional costs that come with it. Upon signing and agreement of the contract, the issuer will keep the share certificates under custody in favour of HYBSE. Once that process is successful, HYBSE will convert the same amount of shares into cryptonized blockshares. HYBSE then distributes the shares, as blockshares, back to the issuer. Therefore, the third-party financial institution, the bank, is removed from the process and the issuer is the primary and sole “holder” of the allocated shares.
It’s important to note that the issuer shall maintain full custody of the shares while transferring all rights and obligations of the shares to HYBSE. Additionally, if the issuer already has shares on a bank account then they may still keep them there. All HYBSE will need is a confirmation and agreement from the Issuer.
The benefits of such a process include:
- Cost saving, less involvement from third parties and the related fees.
- Full responsibility to act as a custodian for their own shares, in favour of HYBSE.
- Issuer has control of dividend payouts, with the help of automated scripts supplied by HYBSE, streamlining dividend payouts.
- Trustworthy and transparency due to the nature of blockchain
- Online engagement — annual general meetings may be held online with the voting taking place on the blockchain, eliminating the risk of human and technical error.
We believe this is the right path for global blockchain adoption, specifically in the financial and trading sector. For more information, kindly contact us on info@hybse.com
