‘Entirety of capital markets shifts from legacy rails to blockchains,’ says Graeme Moore

polymesh-graeme-moore
Graeme Moore is the Head of Tokenization at the Polymesh Association, a not-for-profit dedicated to the growth of the Polymesh blockchain ecosystem. He is also the author of B is for Bitcoin, the first ever ABC book about Bitcoin. Read on to know more about his ideas of tokenization. 

Blockchains have enabled self-custody of money, id credentials, securities, and more.

Media 7: Can you provide an overview of your professional journey leading up to your current role as Head of Tokenization?
Graeme Moore:
  After graduating from university with an Economics degree, I knew that I wanted to work in finance. I earned my CSC and CPH (the Canadian equivalent to the Series 7 exam), passed CFA Level 1 and started working in investment advisory. Quickly, I became bored. I quit my job after 9 months and being an athlete my whole life, I intended to pursue a career in health & fitness. However, the first week after quitting my job in finance, Warren Buffett’s cloud was no longer hanging over me and I finally learned to appreciate Bitcoin.

M7: Can you tell us about your inspiration behind "B is for Bitcoin"? What motivated you to create an ABC book about Bitcoin and crypto currency?
GM:
In 2015, I became obsessed with Bitcoin. I wanted to give back to the community that had given me so much, and my sister was about to have a daughter. I didn’t want to read my niece the tired “A is for Apple, B is for Ball”.  So I came up with a much better idea - “A is for Altcoin busts and booms. B is for Bitcoin, when moon?” B is for Bitcoin became the first-ever ABC book about Bitcoin and has been featured in Forbes, VICE, Financial Times, and more.

M7: As the Head of Tokenization, how do you approach budgeting and resource allocation for tokenization initiatives, and how do you balance short-term needs with long-term strategic goals?
GM:
With the ups and downs of the crypto market, you’re often shifting from feeling like king of the world, to just trying to survive in cockroach mode (as many VCs refer to it). It’s a constant balancing act, ensuring that you have the best talent available to take advantage of the boom times, while ensuring you can still move forward in a potential 2-3 year bearish market with minimal activity.

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A huge challenge has been convincing the SEC that crypto markets are safe for investors, and manipulation is mitigated.

M7: How do you stay updated on the ever-evolving regulatory landscape in Asia, and what strategies have you used to adapt tokenization practices to meet local regulatory requirements?
GM:
We’ve been building tokenization technology since 2017 -- longer than any other team in the industry (we actually coined the term Security Token Offering back in 2017). So, we’ve talked to financial institutions all around the world, and Asian firms particularly in the last few years. While there are some local quirks, the great thing about securities is that regulatory requirements are largely similar all around the world -- ensuring lock-up periods, ensuring KYC requirements, proper trade execution and reporting, etc.

M7: Could you elaborate on the security and custody solutions you've employed for tokenized real-world assets to ensure the protection of investors and asset owners?
GM:
We work with a variety of custody providers to custody real-world assets including Etana Custody, KDAC, and BDACS. However, one interesting trend we’re seeing is investors who want to custody assets themselves. Blockchains have enabled self-custody of money, id credentials, securities, and more. I’ve written about the perils of others holding on to your assets in Fortune and am excited to see more and more people take control of their own destiny.

M7: Ensuring the accuracy and legitimacy of token holders is essential. What strategies have you used to prevent identity fraud and maintain the integrity of your tokenized ecosystem?
GM:
Polymesh is a public-permissioned blockchain. Every single user of Polymesh has gone through an identity verification process, and every node operator validating blocks is a licensed financial entity. For years, we’ve spoken to many financial institutions and part of their hesitancy in using blockchains stems from the pseudonymous nature of public permissionless chains. With Polymesh’s unique previsioning structure, institutions feel much more comfortable using this infrastructure.

M7: KYC is a critical component in financial services. How do you integrate robust KYC processes into tokenization projects to ensure compliance and security? Can you share any best practices you've developed?
GM:
Polymesh, being a public-permissioned blockchain, mandates identity verification for all its users and exclusively employs licensed financial entities as block validators. Our extensive conversations with financial institutions over the years have revealed that their reluctance to embrace blockchain technology often hinges on the pseudonymous character of public permissionless chains. Polymesh's innovative previsioning framework, these institutions now find it significantly more reassuring to adopt this framework.

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A great idea can come from anywhere and it’s important to listen and constantly learn.

M7: What challenges do you foresee in bringing crypto ETFs to the market, and how do you plan to address these challenges to ensure the success of such products?
GM:
A huge challenge has been convincing the SEC that crypto markets are safe for investors, and manipulation is mitigated. Finally we’ve seen the SEC approve Bitcoin and Ethereum futures ETFs, and it seems inevitable that a spot ETF will finally be approved.

M7: How do you foster a culture of innovation and thought leadership within your team or organization when it comes to tokenization strategies?
GM:
It’s important that all ideas in their initial stage are met with curiosity. A great idea can come from anywhere and it’s important to listen and constantly learn. Starting from the top, it needs to be clear that everyone at the company is on the same team, egos should be left at the door, and the objective and success of the organization is all that matters.

M7: As a leader in this field, what are your goals and priorities for your department or organization in the coming years?
GM:
We want $500 billion in annual transaction volume on Polymesh by 2030. There will eventually be hundreds of trillions of dollars in tokenized assets as the entirety of capital markets shifts from legacy rails to blockchains. This infrastructure inversion is just beginning but is rapidly picking up steam.

ABOUT POLYMESH

Polymesh is a blockchain designed for institutional use, catering to regulated assets. It modernizes outdated procedures and paves the way for innovative financial tools by addressing regulatory obstacles through the use of public infrastructure related to identity, adherence, privacy, administration, and settlement. To know more please visit; https://polymesh.network/.

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Polymesh

Polymesh is an institutional-grade permissioned blockchain built specifically for regulated assets. It streamlines antiquated processes and opens the door to new financial instruments by solving regulatory challenges with public infrastructure around identity, compliance, confidentiality, governance...

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