While cash has been digital for some time represented as numbers on a screen, converting physical assets to digital tokens on a distributed ledger now makes it possible to trade and exchange illiquid assets in real time without an intermediary.
Recent developments in digital asset infrastructure including smart contracts are transforming the fund and wealth management industries pointing towards a future of lower cost retail distribution and discretionary management.
Fund managers are currently testing fund tokens based on secure blockchain technology ready for launch, giving investors unmediated access via a digital wallet rather than a platform or bank while also reducing their own cost base and risk profile and providing competition for ETF’s.