State Street says the average portfolio could shift towards digital asset capabilities as soon as 5 years from now

advertisement

The typical portfolio model is going to change, according to Jay Biancamano, managing director of digital product and development at custodial bank State Street. And that's thanks to the digitization of assets.

On this week's episode of The Scoop, Biancamano said that the ability to tokenize assets would allow investors to more easily include more illiquid assets into investor portfolios. Those assets could include real estate, intellectual property and non-traditional assets like art. 

"That conversation has shifted and resulted in more inbound calls from issuers looking to provide these assets to our clients, however clients are still skeptical," he said. "It is a little clunky or cumbersome to trade them, and not as seamless as our clients are used to.”

Biancamano said portfolios will begin to look distinctly different as soon as five years from now. Currently, he said most model their portfolios with equity, bonds and cash. Over time, this could shift to hold assets like real estate, art and intellectual property.

"If you're at the forefront of that, you could figure out ways to provide new products, new services around that," he said.

The security token industry has explored possibilities in tokenizing traditionally illiquid assets, fractionalizing value for investors. Vertalo and Wave recently discussed possibilities of tokenizing assets like racehorses, art and whiskey barrel futures. 

Listen to the full episode of Biancamano on The Block's podcast, The Scoop. And don't forget to hit subscribe.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

TRON USDC now available

Delivering on a vision for an interoperable global standard for dollar digital currency, Circle and TRON have partnered to make USD Coin (USDC) available on the TRON blockchain, which has grown to more than 56 million accounts and nearly 2.5 billion transactions since its founding just four years ago. TRON is home to a broad ecosystem for digital assets in Asia and around the world, and the TRON community can now benefit from easy access to the world's fastest-growing, regulated dollar digital currency. 
Read Full Story
Sponsored Post

Layer-1 Platforms: A Framework for Comparison

The Block Research was commissioned by Algorand to create Layer-1 Platforms: A Framework for comparison, which provides a “look under the hood” at seven platforms: Algorand, Avalanche, Binance Smart Chain, Cosmos, Ethereum/Ethereum 2.0, Polkadot, and Solana. We assess their technical design, related ecosystem data, and qualitative factors such as key ecosystem members to get an understanding of how they differ. Having done this analysis, we draw some insights for what the future of the broader smart contract landscape could look like for years to come. 
Read Full Story
Aug 11, 2021, 5:18PM UTC
More