#DeFi for private markets will bring all the capabilities for the public markets to the private markets, including derivatives, shorting, hedging, indices, ETF’s…all of this relies on good data and price discovery. This is a bit of a chicken and the egg problem. Inveniam has focused on the data integrity side, within a distributed data environment that will drive price discovery.
Building a comprehensive data base for private markets, for DeFi to rely upon, is a fools errand…the better approach is providing the tools to validate data, commute that trust in the data (DLT), and provide real time, permissioned observability to that data at its place of rest. This will allow you to understand the 1) state of an asset, so you can 2) value that asset, so you can 3) trade pieces of the capital stack. This is the cross-section of blockchain, data & private market assets.
Enhanced accounting treatment and speed to valuation leads to speed to transact. The economic benefit is significant: accounting firms can move assets on balance sheets from illiquid Level 3 assets to Level 2 marketable securities. This enables lower borrowing costs & regulatory capital relief – a huge win for big asset owners like insurance companies.