Digital assets revolutionize finance

#digitalassets #crypto

Digital assets can revolutionize the finance industry and change the way we handle money. These assets such as cryptocurrencies, token and digital securities are stored digitally. They are becoming increasingly important for the finance industry, using them has numerous advantages.

On the one hand, digital assets such as token (in various forms and shapes) offer entirely new opportunities for diversification and market access. Ultimately, through tokenization, all conceivable underlyings can be converted into digital financial securities. This leads to significantly higher sales potential for private customers. Many markets, such as private equity, infrastructure, or renewable energy, can be made accessible to retail investors due to smaller entry fees and are no longer reserved solely for institutional investors.

On the other hand, digital assets enable a fast and cost-efficient exchange of assets. For service providers in the industry, this means an increase of speed and efficiency. Through blockchain protocols, some intermediaries can be bypassed, while the settlement process becomes significantly cheaper and more transparent.

Another advantage of digital assets is their high liquidity. Due to the decentralized nature of cryptocurrencies and token, they can be traded anytime and from anywhere in the world, allowing market participants to respond faster to price changes and optimize their portfolios. This broader market potential also leads to a certain democratization of the finance industry and grants younger generations more access and participation in society, especially when it comes to investment and environmental issues.

Regulation is progressing rapidly, and in Germany, thanks to regulation, we have one of the most innovative markets for digital assets. This is also evident from the fact that we saw the largest digital eWpG bond from Siemens in February 2023 for €60 million. Investors were DekaBank, DZ Bank, and Union Investment. Digital assets are no longer a vision of the future, but are starting to transform the markets.

But what does that mean for consumers? Digital assets open up entirely new opportunities for investment and wealth creation. They offer additional possibilities to diversify our portfolios and minimize risks. In addition, we can respond faster to price changes and optimize our allocation.

The potential is great, and the possibilities seem almost endless. Ultimately, the future of digital assets will be determined at two crossroads. On the one hand, regulation must progress to provide clarity for all market participants and thus create security for future investments and developments. On the other hand, neither providers nor regulators should restrict the offer too much. Digital assets enable a significant expansion of the investment universe and a democratization of various asset classes – this potential should actually be fully utilized and might lead to actual changes in the market and the finance industry in the coming years.