Looking into the future of crypto finance, synthetic assets or, in other words, a combination of securities or assets that produce the same effect as ownership of another asset, would provide a window of opportunity for investors looking to diversify their portfolios. Similar to traditional financial derivatives, which derive their value from other underlying assets like commodities, currencies, precious metals, stocks, or bonds, synthetic assets aim to achieve the same objectives without the necessity of holding the actual asset itself. This means that these crypto synthetics do not exist in the hands of their investors, but instead are cataloged, sold and transferred online. By using blockchain, the underlying technology that publicly records transactions on an immutable ledger and allows bitcoin to remain secure and traceable, these digitized assets are proven legitimate and issued to investors. The asset is catalogued on the blockchain through the process of tokenization, in which a token or digital certificate representing the real-world asset is issued to the investor to signify ownership. By creating digital fractional ownership of real-world assets such as stocks, precious metals, real estate, and difficult-to-access commodities, a new world of investment potential can be unlocked for both retail and institutional investors alike.
Vestinwolf Alternatives Ltd is pioneering the financial evolution of Blockchain by issuing Synths across public ledgers. While no official ledger has been announced yet, the following blockchains are in the lead:
Learning more about them in upcoming posts.