The rising power of cryptoassets
Author: Alsaiyed Haiyan
In 2009, bitcoin was the only cryptoasset on the market. Today, it’s estimated that there are more than 2,000 cryptoassets, with many more being created each month. These cryptoassets have become a new asset class of resources with economic value owned or controlled by individuals, organizations or countries. And their possibilities in financial services are vast. Read the white paper to learn more.
Cryptoassets are equipped to play an important role in today’s economies by revolutionizing the way we do business. They open doors for new business models and improve asset management — reducing friction and overhead costs, increasing liquidity, codifying rules and regulations, and increasing transparency throughout an asset’s life cycle.
So, what are cryptoassets?
Technically, a cryptoasset is a digital representation of value or contractual rights — usually called a token — that is cryptographically secured by algorithms. It uses sometype of blockchain technology or other distributed ledger technology (DLT) and can be transferred, stored or traded electronically.
What opportunities do they bring to our economy and to organizations?
Capital markets transactions involve trading, clearing and settlement processes and many third parties, and establishing and running these third-party organizations is costly, complex and requires executing complex and long business processes to ensure integrity and the protection of the stakeholders. Blockchain technology has the potential to cut costs and streamline the clearing and settlement processes by replacing third parties and eliminating the need for their existence or reducing their roles — all while maintaining integrity and protections. It also opens the door to decentralized trading, either peer-to-peer or through decentralized exchanges.
In this white paper, we demystify the complexity of cryptoasset design and point to ways financial services companies can leverage them to their advantage.