Transfer off-chain ownership through DeFi

Hello,

is it currently possible to trade an actual security like an Apple-stock through DeFi? I would say no, since DeFi would have to access the TradFi ledger to legally change ownership. It is only possible:

(1) If Apple gives out a token that works like it’s stock in the first place

(2) To trade a synthetic version of the stock that has nothing to do with actually owning the stock.

Is this correct? Is there maybe a solution, that works similar to Tether, where the seller locks in the Apple-Stock with a CEX that gives out the representation in DeFi? If the buyer then wants to get the stock, the company changes the off-chain ownership in return for the token.

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3 thoughts on “Transfer off-chain ownership through DeFi”

  1. It’s a hard question to answer. It not always true, and not always false.

    At the end of the day, you need to answer the question of enforcement. IF we agree to transfer ownership of X, and that transfer does not occur in real life, what’s the remedy?

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  2. Consider how it really works with TradFi though – when you buy apple stock from e-trade (or other broker) you don’t actually own the stock, you own rights with the broker based on that stock, which is why when these parties go bankrupt you quickly learn that don’t actually own the stock at all. Nobody is sending actual stock certificates in today’s world, so I’m not sure DeFi needs to reach that level either.

    Fairmint is helping startups tokenize their equity, so their actual stock is truly represented in blockchain tokens.

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  3. This is what FTX does. The AAPL token IS the ownership same as a paper equity. You don’t need anything else because ownership is only a legal thing inside of a computer nowadays. It’s just the medium that changes. They can even distribute dividends to holders as USDC if they want to. For those that are holding the AAPL token.

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