Over the next few weeks, we will be highlighting all the various applications of the digital investment platform that is FinPro.

The first function is enabling fractional investments in securities, an investment sector which FinPro is perfectly poised to take over.

Digital securities are growing in both size and widespread acceptance. FinPro seeks to revolutionize this growing industry with the introduction of its proprietary blockchain-based technology. First, FinPro will utilize its technology to fractionalize and offer securities investments. In this manner, FinPro will make such investments more accessible to investors by eliminating the hefty investment minimums, overly strict accreditation requirements, and close industry connections traditionally needed for such investments. Eventually, FinPro will expand to be an all-encompassing platform for the exchange of digital securities.

FinPro will introduce its new scalable technology at the perfect time, capitalizing upon the huge market opportunity and highly promising regulatory conditions in Germany in the following manner:

Digital securities make up a massive global industry:

Digital securities act to digitize private markets. This opens up a new world of financial products and investment opportunities to the general populace, enabling newfound access to more than $256 trillion of previously illiquid and inaccessible real-world assets.  According to The Digital Asset Management Global Forecast 2022, the digital securities industry as a whole is projected to reach $5.66 billion USD by year-end 2022, with an impressive expected compound annual growth rate (CAGR) of 18.3% (1). Clearly, the digital securities market is booming, and is only growing larger by the day (2).

Uses of digital securities are being legitimized by European governments, particularly in Germany.

In parallel to the increase in digital securities popularity, there is also an increase in European governments’ acceptance and regulation of blockchain technology and tokenization. While some governments have pushed back against popular demand for digital security acceptance and regulation, Germany’s government has actively pushed in the opposite direction. Thus, Germany in particular is poised for a sustained digital securities boom, as the government is in the final stages of finalizing a law to permit and regulate digital/electronic securities like tokens.

This law, put forth by the German Finance Ministry, is in the draft phase and is expected to be enacted shortly. Most notably, this law will mean German bonds and other securities can now be represented by crypto tokens, instead of just being exclusively offered via the Clearstream database (3). Effectively, the German government is encouraging the creation, sale, and exchange of digital assets.

It is not just the government and startups that are interested in this opportunity; industry experts also see digital assets as a financial revolution. For example, Alexander Höptner, CEO of Börse Stuttgart (the second largest stock exchange in Germany, and ninth largest in Europe), welcomes this new technology. He states that he is seeking a standard for security tokens to be developed as a new infrastructure for trading assets (4).

These governmental and industry changes in acceptance and regulation are indicators of a shift towards accepting and legitimizing tokenization for a variety of projects within the digital assets industry. This can open up a massive and novel investment opportunity.

FinPro is positioned to be a leader in this industry.

FinPro seeks to capitalize on the market opportunity and regulatory conditions in Germany by introducing new scalable technology at the right time. Our broader vision is for our platform to become the new infrastructure for the exchange of digital securities.

References:

  1. https://blog.investax.io/private-equity-2-0-how-digital-securities-are-changing-the-game/
  2. https://www.marketsandmarkets.com/Market-Reports/digital-asset-management-market-96538567.html
  3. https://www.securities.io/digital-securities-about-to-go-mainstream-with-germanys-new-draft-law/
  4. https://www.crowdfundinsider.com/2019/04/146421-stuttgart-stock-exchange-and-digital-asset-trading-a-discussion-with-alexander-hoptner-ceo-of-borse-stuttgart/