Applying Artificial Intelligence and Blockchain Technologies for Asset Valuation, Tokenization, and Monetization: Ovenue.
You may have a lot of valuable assets, but you’re not sure how to go about monetizing them. You may also be unsure of what their real-world value is.
The global artificial intelligence (AI) market is estimated to grow at a compound annual growth rate of 39.4% reaching USD 422.37 billion by 2028. And the global blockchain market is set to reach USD 39.7 billion by 2025.
AI and blockchain can help with this. AI can help identify and value your assets, while blockchain can help you securely monetize them. With these technologies, you’ll be able to get the most out of your assets.
With the introduction of AI and blockchain into asset management, people will be able to invest their funds more efficiently with less human intervention.
Here’s a look at how AI and blockchain technologies can cater to the needs of the asset management and financing industry.
Convergence of AI and Blockchain Technologies with the Asset Management Industry
The asset management industry has been traditionally quite conservative. This is leading to several bottlenecks wherein the industry is unable to keep up with rising demands and volumes because of its reliance on outdated tech.
On the bright side, the industry is starting to invest in new technologies such as AI and blockchain. These two cutting-edge technologies have the potential to revolutionize asset management. The combination of AI and blockchain can create a more efficient system that is less reliant on human intervention.
Asset managers are turning to AI for help in making better investment decisions and for improving operational efficiency.
For example, BlackRock — the world’s largest asset manager with over $11 trillion in assets under management — has been using AI for years. The firm uses AI and machine learning algorithms to make better investment decisions and to identify new opportunities.
Combining this with blockchain’s distributed ledger technology, which enables tamper-proof, transparent, and immutable record-keeping, asset managers can keep track of their portfolios in real time while maximizing security and inter-organizational information transfer.
At Ovenue, we recognize this paradigm shift and are enabling an asset management future that is driven by AI and distributed ledgers. Ovenue Inc. is an AI and blockchain-enabled Valuation, Tokenization, and Monetization as a Service (VTMaaS) technology company in Silicon Valley, California. Ovenue builds and licenses AI and blockchain technology products for B2B and financial institutions focused on asset valuation, asset management, and digital transformation.
Ovenue recently acquired Irident Inc., an AI-enabled portfolio management engine and asset analytics platform to enhance asset management and valuation. Irident’s technology includes deep learning capability to curate lakes of fundamental, Environmental, Social, and Governance (ESG), macroeconomic, proprietary, and other metrics to drive investment performance including asset valuation. By integrating predictive analytics and asset management capabilities along with proprietary and third-party data sources and solutions, Ovenue plans to enhance the fidelity of the real-world asset valuation and tokenization experience for its customers. Irident sees this as the cornerstone offering, taking advantage of the projected multi-trillion AI market by the end of the decade.
Asset Tokenization with Ovenue
Ovenue is developing an AI and blockchain-enabled end-to-end platform where asset owners and businesses can onboard their Real-World Assets (RWA) and convert them into Asset-Backed Tokens (ABT). Ovenue’s platform has completed over USD 400 million of Tokenized Assets Valued (TAV), including franchising agreements, real-estate portfolios, and life science patents. The platform consists of an asset valuation and tokenization layer, an ABT (non-fungible tokens) marketplace for transactions, and a finance protocol for borrowing and lending against these assets.
ABT enables transferability of ownership or rights to RWA such as real estate, financial assets, natural resources, and even intangible assets such as copyrights, contracts, and intellectual property. These high-value assets can then be easily collateralized and leveraged to raise growth capital on dapps and other protocols.
But how reliable is it?
Blockchain’s permanence and immutability make the assets’ records a single source of truth that all the participants can trust.
Further, investors and creditors can cost-effectively monitor the collateralized RWA, supervise compliance, and instantly detect infringement instantly with using smart contracts.
Native Digital Assets
Jamiel Sheikh, CEO of Chainhaus, in a presentation, proposed that the convergence of blockchain and AI technologies mature through 4 stages.
In the first stage, blockchains remained as mere proof of concepts.
We are in the second stage where assets are being tokenized on blockchain.
The third stage, the convergence of AI and blockchain, is expected to be the next evolution of financial engineering.
ABT that represents ownership of an underlying asset can transform into the underlying asset themselves. These digital assets will exist only on-chain and will inherit economic behaviors of their own including unique cash flows.
In the future, digital assets are expected to be products of human or AI-driven financial engineering, given the influx of on-chain data.
Finally, AI will be used to formulate the risk, pricing, and predictive models of digital assets. Financial firms using AI and machine learning will pave the way for the creation of new and innovative revenue sources.
AI as Economic Agents
The fourth stage in the AI-blockchain convergence will witness AI evolving into economic agents.
These AI algorithms will be able to trade digital assets on blockchain-powered tech stacks. They will also be self-sufficient in making economic decisions and will autonomously interact with other AI agents.
This stage is expected to create new economic paradigms and business models as we know them today.
Despite such potential applications, several organizations have made little to no progress in this space mainly because these deep technologies are heavily reliant on vast amounts of data. Simply put, Big Data is the rocket fuel for AI.
And this is another competitive advantage for Ovenue and more opportunity for us to provide greater value to clients.
With these groundbreaking technologies, we can access not just descriptive market insights but also receive prescriptive actions that we can take to maximize ROI.
Big Data analytics, AI, and blockchain can also be used for risk management in the following ways:
- Credit scoring bias can be eliminated;
- Fraudulent activities can be detected better in peer-to-peer lending;
- The volatility and market risks involved in the financial markets can be measured and monitored;
- Risk profile matching of businesses and asset owners can be improved, and
- Illegal activities in crypto markets such as money laundering, fraudulent initial coin offering, etc., can be identified and acted upon.
Conclusion
Asset tokenization and monetization will evolve to occupy a very important place in the Asset Management industry once it receives more clarity about its regulatory standpoint.
With Ovenue, asset owners can turn real-world assets into asset-backed digital products that can be licensed, sold, and collateralized through a proprietary end-to-end real-world asset valuation, tokenization, and monetization platform.
Enhancing Ovenue’s platform with advanced AI capabilities will drive operational and valuation efficiencies for businesses and financial institutions.
Ovenue stays at the forefront of industry trends and we are always investigating how to best serve our clients. The opportunities that Big Data, AI, and blockchain offer are immense. And we believe that these technologies will shape the future of financial engineering.
Value, Tokenize, Monetize your assets with Ovenue!
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