The way we purchase assets like stock and real estate are changing drastically. The days of owning physical paper assets may soon be gone as fintech developers are beginning to digitize asset ownership. Asset trading is also beginning to rely on blockchain technology, which is taking over the financial sector.
Our new partner Sygnum is ready for this change. In fact, they are ready to lead the revolution of digital assets. Here, we introduce the world of digital assets and how Sygnum can help you with your digital asset needs.
Popular assets like stocks, real estate, carbon credits, oil, and gold can be difficult to physically transfer and/or subdivide, leading buyers and sellers to utilize paper trading that represent some or all of the asset. Paper trading can be complex, 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 should they be tokenizing their assets. The main reason to tokenize is because 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.
Another reason tokenization can be beneficial is buying or selling a fraction of an asset. For example, if an investor wants to diversify their portfolio with a real estate investment, but their initial investment isn’t enough to purchase a whole property, tokenization would allow them to purchase a fraction of an asset, and then continue to purchase more as they feel comfortable. On the opposite end of a transaction, a seller may be in need of funds but they don’t need the whole cost of a property, through tokenization, they can sell a token of the property.
Additional benefits include 24/7 markets, low transaction cost, greater liquidity of asset owners, automated quicker settlement, and improved compliance checks.
Blockchain tokens can represent real-world assets and gives investors the opportunity 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!
While tokenization isn’t a full reality just yet, 2019 is set to be the year where developers and financial companies bring it to the forefront of our minds and change how we trade forever.
Sygnum is a fintech company 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. Read what Chief Operating Officer, Stefan Miller, has to say:
“Blockchain lays the foundation to radically re-imagine how economic activities between humans and machines will be performed in the future. It is exciting to help shape this transformation in financial services. And this is exactly what we, at Sygnum, aim to do.”
The Sygnum approach can be summarized by the following outline.
Many are doubtful of the migration to tokenization and digital asset. The Sygnum team is ready to challenge the status quo of the financial industry by 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.
How will Sygnum stand out from the rest? They are not afraid of the developing world of blockchain technology and digital assets. They are familiar with and embrace the best practices and adhere to high standards of traditional financial services, just like Alpen Partners. By utilizing blockchain and digital ledger technology (DLT), combined with their knowledge and standards, Sygnum creates a system that allows participants to reduce transactions costs and efficiently trade digital stocks.
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 convenience of a phone or other electronic platform is what is creating this strong push towards Fintech.
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!
Are you interested in what digital assets can do for you? Sygnum is one of our new partner so we are ready to help you get in touch!
No matter the problem, Alpen Partners will handcraft a solution for you. We know that there is no one-size-fits-all when it comes to financial success. Our approach involves working with our clients to make a unique plan to meet their needs. Rest assured that we will work hard to guide you through the process of meeting your financial and personal goals.
Contact us to enhance your financial plan today.