What Does the Future Hold for the 7.7 Trillion Dollar Alternative Asset Industry?
The alternative asset industry is colossal. Complementing more traditional financial instruments such as stocks, bonds and shares, alternative assets comprise investments that do not fit into this existing mold. That should not undermine their importance, however. They represent a fast-growing class that is currently valued at $7.7 trillion, and include assets such as real estate, fine art, rare collectibles, and the most recent addition, digital assets.
There are certain constraints to trading in alternative assets that simply do not manifest themselves in the exchange of traditional assets. For example, liquidity is generally much lower for alternative assets; selling Facebook stock would be orders of magnitude easier to achieve than selling an 18th-century French castle, for instance. Lower liquidity can lead to convoluted fee structures and ineffective mechanisms for clearing and settlement.
Those familiar with OpenFinance Network’s mission know that we’re committed to addressing many of the issues that, in the long run, may impact the viability of the alternative asset industry as a whole. We’re strong proponents of injecting bleeding-edge innovation into incumbent institutions and platforms so as to vitalize and to equip the sector with tools to better handle the storage, handling and transfer of assets.
Blockchain technology is well-suited to address the biggest challenges facing the industry with its capabilities for increasing transparency and trade efficiency. We have leveraged blockchain technology to build an alternative asset trading platform for trading digital assets that is in compliance with existing regulations and financial infrastructures. Some assets that will soon be tradable on OFN’s platform include tokens from SPiCE VC, Blockchain Capital, and Science. If you’re interested in trading these tokens, we recommend completing the Investor Passport process on the OFN platform, so when tokens become available, you will be eligible to participate. We believe that by providing a platform for trading security tokens, this will allow for this new digital asset sector to thrive within the greater 7.7 trillion dollar industry.
In using OFN, investors and financial advisors can enjoy greater security over their data, low fees for transfers, and, thanks to the distributed nature of the network, do not need to trust middlemen or third-party custodians with their assets or funds. On top of this, they are able to access a range of previously unattainable markets.
The wider the pool of investors involved in these markets, the greater the demand for financial instruments of all kinds. By offering easier access to capital via a US-regulated platform, OFN furthers the expansion of digital asset investment opportunities for accredited and non-accredited investors alike. OFN will soon be launching its own public security token sale. Stay tuned for details on token launches and OFN’s own public security token sale by following us on our community and social media channels:
Telegram: t.me/openfinancenetwork
Twitter: twitter.com/OpenFinanceIO
Medium: medium.com/@openfinance
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Juan M. Hernandez is the Founder and CEO of OpenFinance Network, the trading platform for security tokens and other alternative assets. Juan is a serial entrepreneur, technologist, and polymath experienced in financial markets, exchanges, and blockchain technology. He holds a CS degree from Northwestern University and an MBA from the Kellogg Graduate School of Management.
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