CDRs To Allow For Fractional Ownership Of Assets
CDRs feature all the benefits of conventional equity ownership and issuance without the drawbacks and can thus make life much easier for both investors and issuers. Apart from leveraging the high speed, transparency, and immutability of blockchain, they will help to reduce costs significantly. For instance, there will no longer be a need to conduct regular meetings of shareholders, pay numerous accountants, or maintain a share register. Many routine corporate actions can be eliminated or automated. Since CDRs are issued on the blockchain, smart contracts embedded in them will enable the automated distribution of dividends and permit online voting, drastically reducing the current costs associated with these actions (which run into millions of dollars).
Besides, investors and issuers will be exempt from burdensome broker execution costs and fees since no intermediaries will be required to perform and settle transactions. Finally, CDRs will allow fractional ownership of many assets that would otherwise be too expensive for small investors.
“In creating our CDR product, we have sat with investors, issuers, and regulators to address their frustrations with traditional markets. We are at the forefront of these developments, and unlike other securitized token models, direct participation from issuers is not required. Our approach leverages a proven route to securitization which, following regulatory approval, allows immediate conversion of the entire market,” CDRX CEO, David Ward said.
https://cryptovest.com/news/crypto-depository-receipts-new-take-on-an-old-solution-can-drastically-change-equity-ownership--issuance/
