PE = Private Equity. RE = Real Estate.
On the use of smart contracts: A security needs to have some controls on who acquires it. The owner needs to at least go through AML checks. There are more rules for private securities. There are three ways to guarantee this. 1) Make all exchanges through the issuer or a single exchange. That’s what we are trying to get away from with blockchains. 2) In the smart contract code that represents the security, add some logic that checks investor qualifications. Those qualifications need to be written to the blockchain as whitelists or attestations. This is what Jesus thinks doesn’t work very well, but a lot of people are making it work pretty well, and it does tend to open up the distribution market. 3) On every transfer, call a more centralized application that is provided by the issuer or a representative of the issuer, and have that application sign off on the transfer.