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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
1 2 3 4
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
4
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Cross-liquidity pools in three stages
5
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
6
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
7
•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
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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
10
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Demand: democratising finance through fractional ownership
5.2T
Financing Gap
1.7B
Unbanked /
underbanked
population
380B
Potential
fees
11