Digital assets are poised to become accepted as investable assets and stores of value, tradable on global, licensed exchanges, and accessible to individuals and institutions around the world. This global decentralized framework relies on — and is powered by — distributed ledgers that eliminate the need for central intermediaries to facilitate the value exchange. Bitcoin is the breakthrough asset of this type, and many more cryptocurrencies have emerged in its wake. But a long history of innovation and experimentation preceded it and made it possible.
Digital assets adoption is growing at an exponential rate. Tokenization alone is expected to be worth USD 24 trillion by 2027, a figure that represents 10 percent of global GDP. Cryptocurrencies are also seeing increased adoption by institutions, namely Tesla and Square. These firms have invested USD 1.5 billion and USD 50 million into Bitcoin respectively. In March 2021, US congressmen Stephen Lynch and Patrick McHenry introduced bipartisan legislation to establish the formation of US Digital Asset Working Group: “Innovators across the country are leading the way on financial technology—Washington needs to keep up,” said Rep. McHenry.
As digital asset ecosystems continue to grow and evolve, new players, new investment opportunities, new moves from the traditional financial sector and growing interest from regulators signal a stable long-term future for digital assets. And making it all possible? Distributed Ledger Technology (DLT).
91% of banks have invested in DLT solutions. DLT, or blockchain as it is sometimes called, is disrupting the financial services sector worldwide. In a drastic improvement over current technologies, blockchain-based solutions allow financial institutions (global asset & wealth managers and asset servicers) to create new digital asset "ecosystems". From accounting to custody of digital assets, and as global processes are becoming increasingly digitized, blockchain-based solutions are arguably the most significant technology innovation in the last few years.
Moreover, "Smart Contract" powered blockchain solutions address security, transparency and chain of custody issues. The "chain of attestation" is supported by cryptographic hash technology which is immutable and underscores a "single source of truth" related to the digital asset and any associated transaction.
Even regulators are now starting to take notice and weigh in, giving "guardrails" within which to operate. As an example, over the last year, regulations have become clearer, and the Office of the Comptroller of the Currency (OCC) has put forth directives that will benefit the adoption of digital assets. In addition to the OCC, Fed Chair Powell has mentioned the launch of a “digital dollar” as a high priority project.
Our solutions are based on our Intellectual Property (IP) and some are US Patented. Moreover each solution is customized for the specific requirements of the institution(s) involved.