Institutional investors are buying digital assets
What sort of structuring considerations should institutional investors think about if they are considering investing in digital assets sector?
The same considerations that an investment manager may bring to any asset, they would also bring to a digital asset. Concerns about liquidity, volatility, consistency or portfolio drift because of the swings in value of these assets.
There's a stabilization in the volatility within digital asset markets, whether it's cryptocurrencies or security tokens.
Otherwise, you will see even greater acceptance that digital assets, security tokens are a viable component of a diversified asset allocation strategy.
Are you seeing that institutions are already in or is that in the future yet to be determined?
Recent statistics have been published about the number of investment managers who have created a slice of their pie into digital assets.
There are lots of managers out there who are marketing crypto asset funds and are focusing on that area of the marketplace in terms of investments.
How do you see the security token changing the real estate space?
Security tokens have the potential to be very transformative on real estate financing and investment.
Tokenization has to serve as a means of financing in a more efficient and streamlined way for fractions of single-fee, simple real estate properties.
Tokenization will enable the financing and carving up of smaller stakes in an individual property and then the divvying up of those stakes among the security token holders proportionately in a way that is superior to existing methods of finance.
There's great potential for security tokens to represent a new development in the financing of real estate particularly.
What other verticals being prominent in the security token space? Are there any reactions around blockchain technology and security tokens?
At its heart, blockchain and distributed ledger technology, these are really just ways to record information in a new way.
There is not constraints on what the content that information should be. This is something that enables these technologies to be industry agnostic and to be applied to potentially every industry.
The benefits are not confined to just finance. Financial services has been an area where there's been a lot of interest in security token and in the underlying technology.
Outside of financial services, a number of traditional technology providers, IBM, Microsoft, Amazon, all offer blockchain technology that developers can build on.
As these infrastructural services are being provided by these technology providers, it must say that the applications will become increasingly common across many different industries.