*Digital Assets:
*The Future of Capital Markets*
By Professor Philipp Sandner, Crypto & Blockchain Expert
August 24, 2021
For many years, certain parts of financial markets have been burdened by unnecessary restrictions leading to inefficiencies regarding the free allocation of capital. The upcoming broad applications of digital assets promise to change this. Legacy markets have long faced obstructions stemming from limitations on asset class availability, the difficulty of cross-border transfers, and minimum capital requirements, to name a few. All market participants stand to benefit from the universal possibilities of digital assets.
*DIGITAL ASSETS:*
Are digital representations of all kinds of objects and their associated value. They allow issuance and transfer of ownership without the need for paper documents. For example, the issuance of traditional securities, costs time and money, and trades across borders are typically very complicated. These inefficiencies lead to high fees and cause delays as transactions cannot be fulfilled or finalized anywhere near instantly.
*BENEFITS:*
Y# Widespread adoption of digital assets will lead to easier and faster issuance of new securities, while cross-border transactions will be streamlined.
Y# Digital assets allow investors with as little as, for example, 1 USD to invest in real estate. Furthermore, investors can split their investment among several different objects, allowing for diversification of their investment.
*NOTE THIS VERY WELL:*
*Digital assets are the future.*
The diversity of investable asset types will significantly increase in the coming years. Businesses in the financial sector, but also in industry, should become familiar with the new opportunities to take advantage of this next stage of digitalization. Currently, there are already some projects and prototypes, but in a few years, there will be thousands of digital assets available to anyone.
Regarding uses of digital assets, this is just scratching the surface. There are many more categories to talk about. Decentralized protocols, utility tokens, non-fungible tokens, DeFi protocols, and more. *The digital future promises to enable extreme diversity in capital markets.*
*SOURCE:*
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January 26th 2022
