Published on: 24/01/2024
Déjà Vu from Davos: The Dawn of Assetization and What it Means for The Future of Finance
On a chilly Swiss evening during the third week of January, an historical moment ensued within the illustrious Steigenberger hotel in Davos. Here, the inception of a game-changing financial concept - Assetization, was publicly revealed, with all the flair and fanfare befitting a major milestone. Just as the event host and RealVisions Damian Horner likened it to the first Sex Pistols show, marking the start of a revolution in music, so too was the hope that this day would go down in history, marking a profound turning point in the realm of finance.
Assetization, a promising amalgamation of asset and democratization, the brainchild of GenTwo pioneers Patrick Loepfe and Philippe A. Naegeli, was introduced to the audience of innovators and investors. As one of the most revolutionary concepts in the financial world since the advent of securitization, assetization aims to give virtually any thing - or idea - potential for investment, thereby unlocking a virtually unexplored world teeming with prospects. This fluid conversion of non-bankable assets into bankable ones not only democratizes, but also revolutionizes investment opportunities, with implications reaching far into the broader financial markets.
The grand reveal, however, wasn’t just about the book launch. Continuing their tradition of presenting innovative ideas, AssetRush also highlighted some nascent developments in the sphere of finance. For instance, Pete Casella, previously founding partner of the well-known US VC firm Point72 Ventures, unveiled his new venture – Stack. Adopting an entirely new approach to venture capitalism, Stack seeks to identify unsolved problems before discovering firms apt at resolving them.
Investors looking at the broader market sentiment could see this as a major shift. Instead of focusing on profits or valuation, investors might start considering pioneering problem-solving capabilities before chasing returns. This could significantly realign market sentiments towards valuing ingenuity, creativity, and problem-solving efficacy over short-term profitability.
Treading along similar lines yet departing to a different dimension was the introduction of “phygital assets” by Sarah Schlagenhauf of Vivents. This concept takes e-commerce and Web3 integration to an entirely new level by tethering physical products to on-chain digital counterparts. On the one hand, this convergence of physical world and blockchain technology raises pressing questions on regulatory and security regimes in the future. On the other, it could unleash unpriced bidirectional potential for tokenizing real assets, thereby expanding the investable universe for digital assets.
Undeniably, the advent of assetization punctuates a new phase of financial evolution. But as with any uncharted territory, it invites questions. How will regulators respond? How will traditional financial institutions adapt? And above all, how will it reshape the financial landscape? For audiences privileged to witness this turning point live, there is one thing that seems certain - the term asset will never be the same again.