Our financial economy is undergoing the most fundamental change in decades:
Although this process has already begun, it is – to some extent due to regulatory uncertainties and limitations – yet in its earliest stages. At FINPRO we are convinced that a few years from now most assets (such as real estate, art, commodities or securities) will be traded in tokenized forms over decentralized networks – a development already picking up traction.
Tokenization will change the financial infrastructure from the ground up. It will bring more transparency to trading, reduce transaction costs as well as procedural complexity and costs for emittance of financial instruments.
Numerous illiquid assets such as premium real estate, luxury cars or blue-chip art, the access to which is currently limited to wealthy individuals and institutional investors, will be made investable to the broad public - through the processes of tokenization and fractionalization.
HSBC expects the market for tokenized assets to reach 24 trillion USD volume by 2027.
In this dynamic and promising environment, FINPRO has positioned itself as a player seizing attractive opportunities to engage in asset tokenization together with industry partners and high-networth individuals (e.g. collectors of art or vintage cars).
From pre-issuance over primary markets, custody and asset servicing up to secondary markets the total savings potential that can be realized through tokenization amounts to 35-65% compared to processes in traditional securitization. This cost reduction makes it possible to cut down the minimum investment amount, thus lowering entry barriers for small investors.
Tokenization facilitates financial inclusion by opening up assets to international small investors and providing a way to trade previously illiquid or non-fractionable assets such as private placements and real estate.
The decentralized network works as a single source of truth for all market participants. Compliance rules are coded directly into smart contracts, thus reducing risk for investors.
