Possibility of building something like Robinhood App on Tezos

perfectparadox · January 29, 2021, 6:17am

The title pretty much says it all. With the recent unfolding of current events, is it even possible to tie trading into the stock market on Crypto currency?

Tezos creates an verifiable account for every single trade. Users are going to burn Robinhood App to the ground and more and more people are going to be interested in trading against Wall Street. Could a Development team create a decentralized app to trade Wall Street? I’m assuming there might be some obstacles with regulation but, hypothetically, could it be created?

Hypothetically, if I buy a stock and own that portion of a company, could I tokenize that piece and place it on a chain through a smart contract?

arrijabba · January 30, 2021, 4:05pm

Hmm, I mean technically this is what STOs are for. Like, I’ve invested in the aspen resort, but only because they tokenized their business and real estate value themselves.

In the robinhood case, that would be tokenizing other peoples’ companies, and basically derivatives in general. Technically an issued stock is a tokenized form of the company that sits on paper, not on chain. It would open the floodgates and I think the solution would need to be very clever. Also probably illegal lol

My hope would be to have 0-knowledge escrow accounts on-chain, that would freeze the stock and give me tokens to trade on chain. But I think in practice it would be more grimy, like trading a “promise” to buy X amount of GameStop shares

You ever heard of Contract for Differences (CFD)? Illegal in the US but another country could probably have an on-chain market for these. No securities actually have to change hands in this system.

So possibly we’re only 1 NYSE price oracle away from doing it

perfectparadox · January 30, 2021, 5:17pm

Thanks for the reply. I had not heard of CFD but I think it’s probably in the best interest of Tezos to remain legitimate globally. If Tezos were to start skirting around the global economic rules, I feel like they may fall under a lot of scrutiny.

How hard would it be for me to buy a stock and tokenize the asset? If I were to own 500 shares of GME, since I technically own them, could I tokenize those assets and put them on chain to off them as I wished? What would that process entail? Is there a way to “burn” the NYSE holding and place in on the blockchain?

MavropaliasG · January 31, 2021, 2:59pm