Three Non-Trivial Capabilities of Derivatives that can Unlock the Potential of Security Tokens

Too Long; Didn't Read

Derivatives is one of those fascinating financial instruments that are called to play a pivotal role in the future of security tokens. For months, I’ve been really intrigued by the combination of derivatives and security tokens which led me to publish some of my initial thoughts in articles such as <a href="https://medium.com/coinmonks/security-token-derivatives-are-coming-8439555e7e5a" target="_blank">this one</a> or <a href="https://hackernoon.com/security-token-2-0-protocols-part-iii-fund-and-derivative-tokens-68f594cbb438" target="_blank">this one</a>. Initially, like most people, I thought about derivatives as a product that will evolve with the maturity of the security token space. While I still subscribe to the core of that thesis, lately I’ve been shifting my thinking about crypto-security derivatives from a sign of maturity of the market to an element that can unlock the potential of security tokens.