The potential of digital securities is underestimated

For many crypto enthusiasts, the topic of digital securities may only be of limited interest. Compared to cryptocurrencies, tokenized bonds are rather conservative and less attractive investments for many investors. Instead of being seduced by a colorful white paper with groundbreaking promises and the chance of a hundredfold increase, the securities prospectuses read more like boring package inserts for cough syrup from the pharmacy. However, it would be a huge mistake to turn your back on the emerging digital securities sector because of this – for several reasons.

The multi-trillion dollar market

Everything is going digital, including our securities. Although practically no one keeps their shares, funds or bonds in their safe at home, these are still with so-called central depositories. Originally, therefore, it is a matter of securities certificates, the management of which, starting with the issue through to stock exchange trading, is still very analogue, expensive and not very flexible. Considering that the global equity sector alone accounts for a market capitalization of around $100 trillion, one can imagine the impact it will have if these assets are mapped via blockchains such as Ethereum, Stellar, Polygon, etc. in the future.