There is a prevailing belief that digital transformation in financial assets is occurring at a faster pace than expected, and we must prepare for it by understanding technological changes, their impact on markets, and challenges of legal regulation. This transformation includes converting assets into digital tokens (tokenization) on blockchains to facilitate their trading and transfer.
Aspects of digital transformation in financial assets
Digital representation of assets: Physical and non-physical assets such as stocks, bonds, cash, and data are converted into digital tokens on the blockchain to facilitate their trading and storage.
Efficiency and speed: Digital transformation provides technological tools that increase the efficiency and speed of financial operations, contributing to broader financial inclusion.
Data analysis: Modern technologies such as artificial intelligence and big data analytics enable the design of customized financial products that better meet customer needs.
Diversification of investments: The transformation is not limited to traditional assets but also includes investment in alternative assets such as digital currencies and digital infrastructure assets, reducing reliance on the dollar and gold.
Preparation for digital transformation
Understanding technology: Institutions and individuals must understand digital asset technologies such as tokenization and blockchains, and how they impact investments.
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