The majority of securities are private, unlisted securities. These assets are predominantly traded Over-The-Counter (OTC), and unlike listed securities - not traded on regulated stock exchanges or through custodial platforms.
In most cases, the involvement of brokers and lawyers is needed to trade these securities, i.e. to find counterparties, and complete the contractual side of the deal. In this process, it is not uncommon to incur costs in the range of 2,5% -15%.
XSC based Security Tokens manage whitelists, and can be programmed to enforce the restrictions stipulated in the applicable shareholder documents. Whitelists are maintained by the issuing company and are used to restrict trading only to eligible investors (for example: investors are allowed to purchase the companies' securities, only after passing the company's investor eligibility checks.
Smart Bulletin Boards can be used to indirectly match qualified buyers and sellers of security tokens. If both parties come to terms and a deal is struck, they can execute the trade trustlessly using the XSC-based security token contract to settle the transaction instantly on the Dusk Network blockchain. Removing middlemen, and friction in markets, whilst opening up new ways for shareholders to sell their securities - faster and for fairer prices.