Less than 10% of stock trading is done my humans. All the rest is machines. Quantitative investing based on computer formulas and trading by machines directly are leaving the traditional stock picker in the dust and now dominating the equity markets, according to a new report from JPMorgan. Notice the rise of M2M trading in the following insane gif.
Look at it this way. Algorithmic trading are the bots reaching out from cyberspace to trade on our stock market. A new project aims to take that to the next level. Enter Polymath. Polymath aims to make it easy for companies to put all financial securities (stocks, bonds, venture capital, and private equity) on the Blockchain.
They call this new approach a security token offering (STO) and contrast it with the utility tokens or ICO’s all the other companies are promoting. They are doing all this in compliance with SEC regulatory requirements and know-your-customer (KYC) laws.
If that doesn’t cause your jaw to drop, look at it this way. If the machines are reaching out to trade on our stock market, Polymath is moving the stock market and the whole world of financial securities to the machine world via the Blockchain. Full stop. Let that sink in. Programmable securities. Financial instruments reimagined as pure data structures.
I was never a car guy until Tesla. Tesla changed at that. It was described as a computer on wheels with its own API. I could understand that and get behind it. It suddenly interested me very much. Polymath is going to do the same thing for finance. If software is eating the world, it’s about to consume the most profitable game in town. Finance. Put your seatbelts on and keep your eye out for Polymath.