So 2 questions.
1) What is the tecnical term for the assets that will be issued on the asset exchange. Specifically what is the technical term for this type of financial instrument? I know they will be a type of security but they are not futures. When the us treasury issued promissory notes redeemable for gold or silver they called them certificates. Is "certificate" the most accurate term? I, with my silver bullion gateway, would be issuing "silver bullion certificates"?
Share?1) What is the tecnical term for the assets that will be issued on the asset exchange. Specifically what is the technical term for this type of financial instrument? I know they will be a type of security but they are not futures. When the us treasury issued promissory notes redeemable for gold or silver they called them certificates. Is "certificate" the most accurate term? I, with my silver bullion gateway, would be issuing "silver bullion certificates"?
2) Even if we know what the technical term is than we probably shouldn't call it that. We may solicit unwanted attention from financial regulators. So what are we going to call them?
Asset?
no a share entitles you to a portion of the equity in a thing. this is different. this is the title to a thing its self. you are the owner of the silver coin, i am the custodian, and the token is the deed that proves that you are the one that owns it.
I suggest you call it anything, other than something misleading or sounding like a wall street financial instrument. What's important is how you define that asset. Let's call it AAg (Anon silver) as an example. 1 unit of AAg = "whatever you define".
Many may not understand the difference between holding title to an asset vs having a claim to a pool of asset. To make your service safe for market participants and professional (and hence profitable for you), it would help if you publish, sign and embedded a social contract into the blockchain defining a few key points:-
(1) Title to asset is transferred from you to buyer upon x confirmations by the Nxt network
(2) Until physical delivery is effected, any holder of AAg as defined by the Nxt blockchain remains the bailor and you become the bailee of the asset. See Bailment.
(3) Asset is stored by bailee on an Allocated asset (as opposed to an Unallocated or pooled asset).
(4) If you deal with bars with serial numbers, you could offer storage as Segregated asset, in which case each title is tied to a unique physical item.
(2) is the most important. Once it has been established that you are acting as a bailee and have no legal rights to the AAg and that they do not appear on your balance sheet, it cannot be sold by liquidators if you become bankrupt (not that you will
) or if it's confiscated by the FBI.This is how major bullion custodians like GoldMoney, BullionVaut & PerthMint do it.
Hope it makes sense.