Digital securities not only have the advantage of enabling faster and easier trading of assets. According to a study by Cashlink, distributed ledger technology can also save some costs.
• Digital assets should open up trade
• More efficient transactions
• Great savings potential
Uncomplicated and fast trading through digital securities
While digital securities may still be new territory for many investors, tokenized assets are gaining ground. The digital assets can be transferred, stored and traded via the blockchain and are therefore independent of banks or depository institutions. This means that trading with digital securities is usually easier and faster than trading with physical investments. The German fintech startup Cashlink is one of the first companies to offer digital securities in Europe. “Our vision is that everyone can invest in every asset,” says the Deutsche Börse partner on its website. “This has not previously been possible with alternative investments such as real estate, collectibles or infrastructure investments. Tokenization changes this. We provide the infrastructure to enable this change.”
Advertising
Trade Bitcoin and other cryptos via CFD (also with lever)
At Plus500 you can bet on rising and falling crypto prices – even with leverage. Try the free demo account now!
Plus500: Please note the Hints5 about this advertisement.
Study identifies savings potential
In addition to simplifying trading, digital securities also bring with them actual savings potential, as experts from Cashlink, in collaboration with FinPlanet and Porsche Consulting, have now been able to determine in a study. The authors of the study came to this conclusion by surveying capital market experts and market participants as well as evaluating price and service descriptions of digital securities. A so-called “bottom-up” approach was also used, which allowed conclusions to be drawn about costs from processes and transactions.
Digital securities are already providing major cost savings
At the time of publication in December 2023, the cost savings potential of investment products based on distributed ledger technology (DLT) was up to 22 percent, according to analysts. Financial institutions could save up to 15 million euros per year through digital assets by eliminating unnecessary intermediaries. These cost savings can then be passed on to the banks’ customers.
Higher savings potential by 2028
By 2028, the savings potential is expected to increase to up to 85 percent. The crypto experts identified particularly high savings potential here in middle and back office processes. It remains to be seen whether digital assets can live up to the study authors’ predictions and actually bring about immense savings over the next few years.
Editorial team finanzen.net