Gunnar Jaerv is COO of First Digital Trust, a Hong Kong-based financial institution developing tokenized asset custody solutions.
In the last couple of years, traditional financial institutions and regulators have started to embrace digital assets. Asset tokenization – declaring ownership rights to an asset in digital form – is opening new market opportunities, channels of investments and consequently, new streams of capital for global businesses and markets.
Some estimates show more than worth of assets could become tokenized in the future, and nations with progressive regulators will be the first to access its potential. There’s been a recent uptick of financial regulators and institutions developing digital asset adoption infrastructure further indicating the advancement of this new way of managing funds. In May 2020, the Swiss Financial Market Supervisory Authority (FINMA) customers can now legally carry out digital asset transactions, for example.