Digital assets enable seamless asset management throughout the asset’s lifecycle,
from creation and issuance to distribution and global exchange.
Reduction in errors
Blockchains eliminate out of sync ledgers and reconciliations.
Reduction in capital consumption
Quicker settlement of trades, straight-through processing, and freed up capital flows.
Increase in efficiency
Straight through processing and a single source of truth.
Investment companies have limited control, poor transparency, and higher costs than necessary. Investors are left with sub-optimal experience and high fees.
Inaccurate and and fragmented data
Asset management still requires manual input which inhibits data sharing and makes it prone to human errors. As a result, data is fragmented with different parties possessing disparate information.
- Human errors
- Inconsistent data
Unforeseen costs and subpar experience
Reconciliation increases expenses, and asset management costs get passed on to investors through higher fees. Additionally, the investor experience is affected: information is complicated to collect, and an investor might even receive ambiguous data from different sources.
- High costs
- Poor user experience
Too many steps
Intermediaries make the process complicated and ineffective, failing to fulfill the users’ demand for dynamism.
The distribution of assets is characterized by middlemen, usually banks or brokers, hindering a direct relationship between issuer and investors while raising costs.
- Unnecessary third-parties
- Complex process
Blockchains provide maximum transparency and very low costs through decentralization.
Trustless and transparent
Blockchains increase data availability by acting as a single source of truth. All involved parties access data from a single ledger, minimizing reconciliation errors; the increased transparency allows for more precise risk management and offers a better client experience.
- Single source of truth
- No reconciliation errors
- Better investor experience
Automate, automate, automate
Smart contracts facilitate processes automation and reduce manual intervention, further lowering the risk of error and cutting down costs throughout the whole asset lifecycle.
- Process efficiency
- No manual intervention
- Lower costs
Make the rules
Companies can issue native digital assets that can be customized with different levels of rights and obligations encoded into the tokens.
Investment firms can further access a worldwide audience at lower costs with a direct-to-investors approach, allowing for better control and improved investor relations.
- Custom rules and rights
- Wider investor base
- Easier asset monetization
Tokens are truly digital: they can easily be traded for increased liquidity in secondary markets. By opening up to a global market of investors and attracting new investors due to better liquidity, businesses can unlock more market potential.
- Completely digital
- Increased liquidity