The Russian company went straight to bond buyers, recording purchases on the open ledger system.
What it means:
Wall Street, is in trouble! If securities issuers can go straight to buyers, then they no longer need the pricey middlemen called investment bankers. Eons ago these guys would shop a new deal in a dog-and-pony show, explaining to brokers why it would be great for their clients to buy the stock, bond, or whatever was on offer. The internet eliminated the need for such marketing. Now, investment bankers serve only as gatekeeper, for which they demand a hefty fee. If issuers can use block-chain and totally bypass investment bankers, they will save a fortune.
But there’s a catch.
The governments kind of like the investment banks. They give the agency a reason for being. If issuers go directly to investors, then federal agencies like the SEC will lose a lot of power. It looks like a turf war in the making, with investors paying the price one way or the other.
Sources:
https://www.telecompaper.com/news/megafon-places-bonds-using-blockchain--1214494
Congratulations @westernn4tive! You have received a personal award!
Click on the badge to view your Board of Honor.
Do not miss the last post from @steemitboard:
SteemitBoard and the Veterans on Steemit - The First Community Badge.
Congratulations @westernn4tive! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!