Synthefi – A Defi Application To Offer Tokenized Stocks Pegged to Real-World Stocks

Abstract

The stock market, particularly the U.S. stock market, can have a high barrier to entry for some individuals. Especially for Non-US citizens. There are also regulatory requirements and fees associated with trading stocks, which can further increase the cost and complexity of entering the market. Blockchain technology could change how stocks are traded by making the market more open, fraud less likely, and the settlement process more straightforward. By using a decentralized ledger to record transactions, blockchain can provide a secure and immutable record of trades. It can increase confidence in the market and potentially lead to reduced costs for traders. Additionally, smart contracts on a blockchain platform could automate certain aspects of the trading process, further increasing efficiency. Despite these potential benefits, the adoption of blockchain in stock trading has needed to be faster to date, with regulatory and technical challenges remaining. Nevertheless, as technology develops and regulatory frameworks evolve, we will likely see increasing use of blockchain in the stock trading industry in the coming years. This thesis will examine the potential benefits and challenges of using blockchain in the stock trading industry and the technology's current and potential use cases. This thesis will explore the concept of stock as a synthetic asset and its potential benefits and challenges. It will examine the current state of the market for stock as a synthetic asset and consider the potential for its use in various sectors, including traditional finance and retail investing. The thesis will also consider the regulatory landscape surrounding stock as a synthetic asset and the potential impact of these assets on the broader financial system. Finally, the thesis will examine the technical considerations involved in creating and trading stock as a synthetic asset on a blockchain platform and the potential role of smart contracts in this process.