Digital Asset Backed Securities: Capital Markets 2.0

The Future of Finance Summit, Bangkok 31st May 2019

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VIRTUAL ASSET

Digital

representation

of rights

RIGHTS

Explicit/ implicit

ASSET

Tangible/ intangible/

financial

Blockchain infrastructure

Ownership Voting Claim

Digital container („Token‟ or „Coin‟)

1 Legal prose 2 Code (Smart Contract)

R I G H T S

R I G H T S

TOKENISATION: Digital representation of rights in an asset on a blockchain protocol

Tokenisation 101

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Cryptocurrencies ICO Tokens Digital Currencies Digital ABS

Only a few will survive

• Transfer of value

• Storage of value

• Blockchain platform

embedded with the

crypto-currencies

(e.g. Bitcoin,

Ethereum)

• New funding method

• Utility (reward,

access, unlocking

features), security

(debt, EQ) and credit

• Security tokens to

stay if done right

• Central Bank issued

• Notes and coins

replacement

• M2 flow, inflation

controls & tax

collection real-time

• Digitisation of assets

• Unlimited

opportunities to

deploy trillions of

trapped liquidity

• Intermediaries

disruption

True utility & funding to

prevail

Unavoidable No winners visible yet

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T O D AY T H E F U T U R E

Not all cryptos are created equal

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Digital Assets Revolution

E F F I C I E N C Y Reduced process

complexity

Integrated data recording

and management

Automated and

programmable workflows

A C C E S S Digital access to

alternative assets

Smaller investable units

via fractional shares

L I Q U I D I T Y Efficient electronic

change of ownership

Direct connection between

asset owners and investors

Broader market

participation

I N N O VAT I O N Rapid time to market Portfolio of “me” High emotional content

No minimum ticket

size

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Cross-liquidity pools in three stages

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Fractional ownership of

physical or/and digital

assets to increase the

reach of potential

investors base

Ability to resell fractions

to other investors on

platforms where price

discovery, liquidity

provision can be

achieved in a

transparent & legal way

Buyers and sellers buy,

sell, swap, pledge, lend

across asset classes

P R I M A R Y I S S U A N C E

Buy to hold

S E C O N D A R Y

Buying & Selling

T E R T I A R Y

Cross assets investing

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We are not there yet

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TA X O N O M Y R E G U L AT O R Y E N V I R O N M E N T

Markets

Authority

Central

Bank

Finance

Ministry

Judiciary

Legislature

Supra

National Inter

Governmental

WHO IS IN

CHARGE?

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This is only the beginning

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•Emerging new asset class

•New markets and products creation to unlock trillions of

trapped liquidity

•Professionalisation to broaden distribution

•Portfolio diversification by Crypto-holders

•Integration of crypto and traditional asset classes

•Regulated activities to become the norm

•Equity type market structure

•Prevalence of enterprise-grade technology

Thank you

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Technology is an enabler

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Supply: Trillions of trapped liquidity

228T

Real Estate

150B

Jewellery

2.5T

Private

Equity 2.5T

Investable

Gold

100T

Bonds

1T

Private

Debt

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Demand: democratising finance through fractional ownership

5.2T

Financing Gap

1.7B

Unbanked /

underbanked

population

380B

Potential

fees

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