What are the biggest trends to shape digital assets today?
While many play trends, three stand out: regulation, institute and tokens of real -world assets.
The US appears to be adopting a more favorable currency towards digital assets with the administration coming. If it leads to a clear and more transparent regulatory landscape, it will promote more adoption, exploration and innovation for the entire region and inspire the US to become a global leader in the blockchain ecosystem.
Bitcoin and Etharium ETFs have opened up to trillion dollars in capital that sit in reliable regulated brokerage accounts. This has made it easier for many types of investors to invest in crypto. Capital flows from this giant pool through current and future ETF products and can provide more stability for the asset class and create new opportunities for investors.
The first widely successful app of blockchain has been stabechoin. The use of stablecoins on the ramp for digital asset ecosystem and as off ramp proves their utility, and we see further adoption, especially with regulatory railings. But Stabecrimons are quickly supplemented by tokens of real -world assets. The examples of Benji token money fund products of Franklin Templeton are how blockchains are expanding into real world assets, which are to use with stabblecoin for opportunities such as collateral management, border-limit and colleague to peer payments. We expect to see new and creative uses of this technology over the months and years.
What do you think how will digital assets space develop in the next decade?
Over the next ten years, we see a deep penetration of blockchain technologies to outline capital markets, asset management and wealth movement. It is a powerful unlock. Asset manager will integrate blockchain technology in its operation to increase capacity. The blockchain scale facilitates rapid and tracedable money movement and the current payment will be one of the disruptives for the ecosystem. Banks that have been testing and developing more limited private blockchain networks over years can prepare networks to perform more functions like public blockchain as they want to process large versions of transactions because bank Benefits are benefited. Finally, the continuous development of active and deep crypto derivatives markets to manage the risk will increase adoption by more actors seeking new asset opportunity sets.
What are the biggest challenges before digital assets?
Outside the regulatory challenges of the last few years, the industry still needs to be taken out of bad actors who make a small percentage of the community, but generate a odd amount of headlines. That prestigious challenge has created an unnecessary barrier to adopt more mainstream.
Digital assets are growing quickly, and from sub -region crypto currencies to stabechoin ranges from tokens and central bank digital currencies. It may be challenging to sort through hundreds of projects and tokens to determine what the real, permanent value is. As -As this sector is growing and maturing, investors will need to give big advice from people like Franklin Templeton Digital Assets Team who understand the inherent technology and can add that these investors can help to help make making. Better informed decisions with fundamental research and analysis of traditional finance teams for.
We are building blockchain-based technology products, running node verifications and developing digital asset investment strategies since 2018. With experience on that hand, we are deployed to help customers navigate this new investment landscape in Franklin Templeton.
