Funds Whitepaper

Tokenisation shapes new era of funds and asset management

According to a study by the Boston Consulting Group, the 20-year boom in the fund industry is coming to an end. Increasing outflow of funds, the continuing trend towards passive products and the lack of innovations on the asset side will cause earnings to dwindle. The industry will only be able to achieve the successes, like most recently in 2021, through disruptive innovations and, on the other side, through efficiency gains along the entire value chain.

WeOwn’s Latest Whitepaper:

Asset management under pressure: digital assets and tokenization as future trends for the fund and asset management industry. This whitepaper is designed for fund and asset management experts, who want to understand how the blockchain technology can bring efficiency gains and asset innovation for their industry. The Whitepaper delivers an overview on value levers, state of regulation and best practice how to adopt blockchain innovation.

Frequently asked questions

What is tokenisation?

Tokenisation is a digital securitisation process of ownership of certain goods, physical objects or rights. To do this, imagine that you own your house in digital form in a decentralised database. In this process, anything can be tokenised: Bonds, real estate or even licensing rights to pieces of music. Instead of a “physical” document, a digital token certifies the respective ownership.

What does fund tokenization mean?

A token is the technical representation of a whole or fragmented asset on a blockchain. The token and the transactions associated with it are immutably stored on the blockchain. All market participants have simultaneous access to this data in real time.

How does blockchain technology address today's trends & challenges in the asset management industry?

Blockchain and tokenisation reduces time and effort for data management and clearing and settlement between all parties involved in the funds value chain. In parallel new asset classes, especially private assets, are easier to incorporate in funds and therefore deliver real innovation and differentiation on the asset side.

“Technology has reshaped markets and business processes throughout history and opened up new possibilities for market participants, as is currently the case with blockchain technology. We see asset management on the cusp of a revolutionary transformation that will benefit clients as much as investment managers themselves. Blockchain technology offers asset managers competitive advantages along the entire value chain, opening up new and more direct ways of accessing clients and enabling a better value proposition and higher investment returns for clients.”

What are the advantages of blockchain in the fund value chain?

Creation of efficiencies and thus high cost reduction, especially in the management & processing of the data.

Transparency, integrity of data

Elimination of the central securities depository and physical custody of the fund unit certificate

Time savings in the settlement process from 2 to 3 days to same day or 1 day

Real-time access to current data on the blockchain for all participants ("single source of truth")

Automation of processes through smart contracts

Increase differentiation and investor value through adding asset-backed tokens

Any questions left?

If you have any further questions how you can profit from blockchain and tokenisation, contact Albert Brenner, Chief Commercial Officer of WeOwn, and we will help you to develop your roadmap to blockchain transformation.

The WeOwn platform is use case specific configurable and covers all relevant blockchain applications for financial institutions. The flexible WeOwn Blockchain architecture offers significant advantages:

The secure WeOwn Enterprise Blockchain architecture combines the advantages of controllable, secure, cost-effective and environmentally friendly distributed data management with the benefits of defacto standard Blockchain networks, enabling many advantages:

Only 0.0009 cents per transaction

Up to 24,000 transactions per second

100% CO2 neutral and ESG compatible

Low transaction costs

High transaction enabled by delegated proof of stake validation

Low power consumption of only 0.03 kilowatt hours per transaction and neutralisation of remaining emissions

Certified system security and minimisation of security vulnerabilities of smart contracts, generally the No. 1 security risk in blockchain applications

Interoperable through WeOwn Blockchain Bridges, Digital Assets can be transferred to/from other Blockchains at any time