Asset-Backed Tokens — Part I
Security tokens represent the next period of growth for digital assets, which will be fully regulated, meet traditional valuation methodologies and asset classification, and offer new investable assets.
Key research questions
- What is the position of global financial institutions towards digital assets?
- What are the key benefits of security tokens?
- What is the relative digital asset market opportunity?
Abstract
The growth of initial coin offerings and token generation events over 2016-2017 has been a game-changer for digital assets. This new series of reports kicks off with an exploration of the potential of security tokens to catalyze the next chapter in the evolution of this new asset class.
Asset-backed tokens in general and security tokens in particular combine public blockchains with regulated financial markets.
This is a very powerful combination which will catalyze the next generation of digital assets and drive institutional capital allocation.
Through the prism of how global financial institutions assess risk, our preliminary assessment indicates that the market opportunity of security tokens is remarkable.
This report provides high-level estimates on the relative market opportunities facing key digital assets including cryptocurrencies and stable coins, utility tokens, and asset-backed tokens.