What you need to know about digital assets and crypto management.
The presence of cryptocurrency is a polarizing topic. Still, no one can deny that it has made a significant impact on the future of how we think about currency and the economy. Simply put, cryptocurrency is a digital monetary system based on blockchain technology.
One of the leading questions that is at the forefront of many investors’ minds is where cryptocurrency and digital assets are to be held and managed? You cannot simply go to your local bank and open a digital currency holding account, especially if crypto is entirely inaccessible in some countries.
Here we will take a look into how tokenization is revolutionizing investment, where you can reliably find cryptocurrency services and two of our favorite digital asset management partners.
Cryptocurrency and Tokenization
Cryptocurrency can make transferring funds easier between two parties. The transactions don’t cost much and allow users to avoid high fees experienced when using most banks and wire transfers.
Since the inception of digital currency, developers have revolutionized not only the currency we invest with but also the assets we invest in.
Popular assets like stocks, real estate, carbon credits, oil, and gold can be difficult to physically transfer or subdivide, leading buyers and sellers to utilize paper trading that represent some or all of the asset. Paper trading can be complicated, with legal agreements that can be hard to track. One way to combat this process is by switching to a digital system.
Digital systems allow commodities to be traded without the use of paper but can come with a hefty overhead and relies on trusted participants. Fintech developers, major financial companies, and startups are all switching their gaze to asset tokenization.
Security and ease is the first benefit of tokenizing hard assets. Many are asking why they should be tokenizing their assets. The main reason to tokenize is that it makes it easy to subdivide stocks and sell fractional pieces of a commodity to multiple buyers. If you take a commodity, such as gold or diamonds, physically purchasing the investment can be a lengthy process, with verification, secure transportation, and storage. With a token, trading commodities, whether partial or whole, is much easier, with the added benefit of blockchain security.
Blockchain tokens can represent real-world assets and allow investors to democratize ownership of various asset classes. It can be used on any non-liquid assets; venture capital funds, real estate, precious metals, currency, art, sports teams, and beyond!
The tokenization of all of our typical assets has not fully developed. Still, it is time to begin thinking about where and how we will invest in digital assets with digital currency. It will be here before we know it, and we don’t want you to be left behind.
As stated earlier, cryptocurrency is quite polarizing. So polarizing that many nations have completely banned crypto. However, some countries have not.
Acceptance of Crypto In Switzerland
Swiss economic authorities have accepted cryptocurrency with open arms and are even encouraging ICOs, unlike many other economic centers.
Switzerland has always had a progressive viewpoint on private banking and privacy, and this holds with cryptocurrency regulation – with an open attitude towards digital money. Economics Minister Johann Schneider-Ammann stated in January of 2018 that he would like to see Switzerland as “the crypto-nation.”
The financial authority, Finma, believes there are economic opportunities in the digital currency startups. There is an ICO working group that is working to increase the legal certainty, protect existing financial centers, and ensure tech-neutral regulation.
The country is also home to the “Crypto Valley” project, one of the world’s leading ecosystems for crypto, ledger technologies, and blockchain. Many successful ICOs have come from Switzerland, such as Ethereum. Emerging digital pioneers have created this crypto hub near Zurich, in Zug, formed by affluent investors and technology specialists, and it has been more than successful.
There is no doubt that individuals interested in cryptocurrency should be looking to Switzerland for crypto banking needs. Let us look at two leaders in digital asset banking, Sygnum and SEBA.
Sygnum is a Swiss bank based in Switzerland and Singapore that works with clients with their digital asset needs.
This tech-driven company works to empower financial services in the expanding economy of digital assets. Their goal is to give clients and partners integrated solutions to store, trade, manage, and issue digital assets. Sygnum utilizes ledger technology to change the financial industry.
Not only does Sygnum want to give clients the solutions needed for digital assets but also to inspire individuals all over the world to create and have access to ownership and value.
Many are doubtful of the migration to tokenization and digital asset. Sygnum is getting behind the growing tokenization ecosystem, offering cutting-edge and practical solutions to digital asset problems. They want to move beyond mainstream awareness and grow everyday use.
SEBA is a Swiss frontrunner in technology and finance. This licensed bank provides institutional and private clients with secure and integrated access to digital and traditional asset markets.
The bank is developing a comprehensive list of services to be utilized by banks, asset managers, private investors, and family offices. These services will provide secure access to assets that are both physical and digital. These services include:
- Custody storage
- Trading and liquidity management
- Asset and wealth management
- Transaction banking
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the comfort of a phone or other electronic platform is what is creating this strong push towards Fintech [link to Introduction to Fintech page].
Looking beyond blockchains, we are seeing technology have a hand in simple things such as payment and holding money and more complex life aspects like investment advising. Some companies are even developing ways artificial intelligence can assist in hedge fund managing!
If you want access to digital asset investing and management or want more information regarding crypto banking, contact Alpen Partners today!