1.
F I N A N C I A L
S E R V I C E S
R E V O L U T I O N
: D I G I T A L
A S S E T S
N O V . 2 0 1 9
B L A C K C H A I N .
G U R U

2.
B L A C K C H A I N .
G U R U
Overview of the
financial
environment
How things are changing?
As a recent example from Switzerland, a tighten
regulatory corset was imposed on the financial
market players due to financial crisis in the
country. Hence we can witness a structural
fundamental change in the country due to
parallel digitalisation and accelerated
competetion in the new technologies. This has
led to an explosion of opportunities in the small
business sectors. Amongst other factors,
Distributed Ledger Technologies (DLT), which
enable new forms of digital transactions, offer a
large potential for new business opportunities.
We can see a number of use cases in the
traditional financial markets, such as process
improvements and leveraging Distributed
Ledger Technologies (DLT) based solutions in
areas e.g. trade finance, know your costumer
(KYC) or corporate actions processing & the
universe around storage and transfer of value
using a distributed ledger, i.e. the tokenization
of assets and financial instruments.
Define tokenized assets
Discuss about market size and market potential
Market opportunities
The intent of this document is to attempt to pursue
the following purpose :

3.
B L A C K C H A I N .
G U R U
MAJOR CHANGES &
THE WAY FORWARD
Markets have been facing a lot of dramatic
fundamental changes. Starting from the 2008
financial crisis to declining interest rates,
decreasing profit margin in financial
management, hence we can see a substantial
advancement in disruptive technologies. In
years to come, clients will demand easy access
to digital solutions that can be highly
customized as well as a diverse and especially
cost-efficient offering of products along all
asset-classes.
Payment function, therefore also known as payment token
No claims or rights against emitters or 3rd parties
Can be produced via “mining”
Examples: Bitcoin, Ether, Monero
Confers rights to access, use or participate in blockchain-based (decentralised)
applications or ecosystem
Examples: Augur, DAV
Also known as “Security Token” or tokenized assets
Rights against emitters / 3rd parties (e.g. participate in profit or revenues,
membership rights, derivative rights)
Underlying securities: equity, debt, derivatives, funds, currencies,
real estate etc.
Used as a tool to enable more effective and
efficient processes, e.g KYC
Tool of shared information
Digital Assets - representing a form of economic
resource with a peered value and can be
produced and transferred as defined in its
underlying distributed ledger network.
By looking at the market-investor behavior we can
conclude that the financial industry has started to
become a technology-intensive market model.
Among the new technologies, Blockchain and
Distributed Ledger Technologies (DLT) are among
the most ground-breaking inventions for the
financial services industry, new business models
that was solving problems of traditional markets,
SaaS offerings and value propositions. Two major
roles of DLTs in the financial markets are :
.
CRYPTOCURRENCIES
UTILITY TOKEN
ASSET TOKEN
C A T E G O R I E S B A S E D O N F I N M A V I E W

4.
T h e c e n t r e o f a t t e n t i o n i s a l l
a r o u n d t h e d i g i t a l i z a t i o n o f
a s s e t s , a l s o c a l l e d t o k e n i z e d
a s s e t s

5.
DIGITAL ASSETS AND
TOKENIZED WEALTH
Fractional ownership
Instant settlement of a trade or transfer or instant
valuation
The token is a financial investment
The investment goes to a company or group of
companies
The investor has the expectation to make a profit by
acquiring the token.
The expected profit is generated by the work of third
parties.
With tokenisation of assets, a variety of benefits emerge,
namely :
This new technology also enables flexibility and enhances
fungibility of assets.
Digital asset can be cryptocurrencies, utility tokens and
security tokens. In this document we will focus on asset-
backed digital coins or tokens (security tokens).
A token is a security token if the following points are all
met:
Depending on its design tokens can be equipped with
various property/ownership rights such as dividends,
shares- or voting rights

6.
B L A C K C H A I N .
G U R U
MARKET SIZE &
POTENTIAL
Several market studies and surveys predict
huge potential and growth for Tokenization: According
to a survey by the World Economic Forum the amount
of assets being digitized on the blockchain will be up
to 10% of global GDP in 2027.4
Built for future
It is well projected by another research indicates that there will be a tokenized market volume of USD 24 trillion
and also indicates that in the initial times, institutional issuing products as equities and bonds will reap the
benefits of this technology. Initial Public Offering (IPO) will then be replaced by Security Token Offerings (STO) or
an Initial Digital Offering (IDO) that will future benefit overall lower issuance and trading costs.
Then the next wave of this new technology will cover the tokenization of small resources that are more illiquid
or non-fungible such as real estate or small companies. Later, non-bankable assets such as cars, wine or other
collectibles will leverage the power of blockchain. With the help of blockchain, these ‘tiny’ assets will leave their
‘illiquid’ nature and then be widely exposed to potential investors.
0% 10% 20% 30% 40%
Listed Equity
Unlisted Equity
Other Equity
Investment Funds
Bonds
Home Equity
Other financial assets
Other tokenizable assets
2027
-24Trillion

7.
B L A C K C H A I N .
G U R U
BUSINESS
OPPORTUNITIES
Just like our traditional system, the digital asset
value chain is no different as the new business
opportunities might look same but it requires
different set of experience and experience for
institutions and investors.
Owning the private key equals owning the asset and
that makes the access to digital assets somehow
physical. Due to this emerges the new of need of
new frameworks in certain business areas such as
Issuance, Trading and the most important Custody
Services.
ISSUANCE SERVICES
INFRASTRUCTURE AND TRADING
One of the main business areas and the start
for every business process in this context, is
the issuance of tokenized assets, meaning
the tokenization of any bankable or non-
bankable assets. Tokenization service
providers need to provide technical solutions
that are well aligned with the regulatory
requirements.
There are initiatives underway which build a
regulated and reliable digital infrastructure,
where digital assets can be processed in a
highly efficient manner. The trading area
offers business opportunities for (A) market
infrastructure services and (B) the broker/
dealer / bank business.
Underlying
Asset(s)/Collateral
e.g Real Estate
Legal Entity
e.g Swiss Stock
Corporation
Digital Asset Token
Legally
O
w
ns/Holds
Represents
Ownership

8.
T H E F U T U R E O F
I N V E S T I N G I S
D I G I T A L
Tokenized assets enabled by Distributed Ledger
Technologies unify intermediaries on the
capital market and reduce costs for issuers and
investors due to optimized issuance,
distribution, trading, instant settlement and
automated lifecycle management.

9.
B L A C K C H A I N .
G U R U
CUSTODY SERVICES
It is obvious that the clients might prefer their
private keys to be handled by banks,
wealth/asset manager of their trust due lack of
faith in other solutions.
This is where the Custodial services such as -
custodial exchanges, third-party custodians and
self-custody by institutions and service
providers – comes in. There are some pros and
cons of custodial exchanges. Pros being the
exchanges having direct market access, while
cons are security and regulatory risks. On the
other hand, third-part custodians have asset
protection (insurance) in the first place and they
also provide audited solutions proving
themselves being better than self-custody.
01 WHICH STANDARDS WILL BE ESTABLISHED? (DLT, SMART CONTRACTS ETC.)
02 WHAT HAPPENS TO A TOKENIZED ASSET IF THE UNDERLYING COLLATERAL IS STOLEN OR DESTROYED?
03 HOW IS SHARED OWNERSHIP AND SHARED USAGE OF A NON-BANKABLE DIGITAL ASSET REALISED AND
ORGANISED?
CHALLENGES –GROWING WITH THE TASKS
04 HOW WILL INTEROPERABILITY OF DIFFERENT BLOCKCHAINS BE ENSURED?
15
05 HOW WILL CONCERNS ABOUT SECURITY ISSUES (I.E. RECENT NEWS ABOUT HACKED CRYPTO EXCHANGES)
BE ANSWERED?
06 HOW TO DEAL WITH OPERATIONAL ERRORS IN CONTEXT OF IMMUTABILITY (I.E. THE FACT, THAT ONE CAN’T
REVERSE A TRANSACTION MADE ON A BLOCKCHAIN)?

10.
B L A C K C H A I N .
G U R U
R E F E R E N C E S
NUNES, PAUL. DOWNES, LARRY. ABBOSH, OMAR. (2020). PIVOT TO THE FUTURE: Discovering
value and creating growth in a disrupted world.
2. VELISARIOUS, JOHN. HERZIG, JUSTIN. UNAL, DIDEM (2019). Blockchain’s potential starts with security.
https://www.accenture.com/us-en/insights/blockchain/potential-starts-security
3. SWISS FINANCIAL MARKET SUPERVISORY AUTHORITY. (2018). Guidelines for enquiries regarding
the regulatory framework for initial coin offerings (ICOs).
https://www.finma.ch/en/~/media/finma/dokumente/dokumentencenter/myfinma/1bewilligung/fintech/wegleitung-ico.pdf?la=en
4. WORLD ECONOMIC FORUM. (2015). Deep Shift: Technology Tipping Points and Societal Impact.
http://www3.weforum.org/docs/WEF_GAC15_Technological_Tipping_Points_report_2015.pdf
5. FINOA. (2018). The Era of Tokenization — market outlook on a $24trn business opportunity.
https://medium.com/finoa-banking/market-outlook-on-tokenized-assets-a-usd24trn-opportunity9bac0c4dfefb
6. BUSSMANN, OLIVER. (2019). Forbes. The Blockchain Comeback: How Institutions Effectively Use
Digital Assets. https://www.forbes.com/sites/oliverbussmann/2019/04/24/digital-assets-are-redefining-financial-markets/#13648766ec5b
7. NICOL, DAVID. (2019). R3 Publication. SIX Digital Exchange: Innovation the Swiss Way, powered by
Corda.
https://medium.com/inside-r3/swiss-digital-exchange-innovation-the-swiss-way-powered-bycorda-9ffedc5ea148
8. FINOA. (2018). Digital Asset Custody: the ultimate step for institutional adoption. https://medium.com/finoa-banking/digital-asset-custody-the-ultimate-step-for-
institutional-adoptionea4c46e07887
9. UHL, MATTHIAS. ROHNER, PHILIPPE. (2018). Increasing Investor Happiness with Holistic and GoalBased Investment Advice. Journal of Wealth Management, 20 (4), pp.
22-28. Available at SSRN:
https://ssrn.com/abstract=3051143

11.
Known as the youngest and most influential Blockchain expert in the field. She is
an Italian-American who first started out as a startupper in the AI and IT business,
while still finishing her Economics and Management studies in Bocconi. Eloisa is
a renowned author, public speaker, and biz-dev, catering startups and
companies wanting to innovate. Currently being the Chapter
Director of Bocconi University Startup Grind Chapter, she made valuable
connections and became a part of some of the main blockchain associations
around the world, namely The Blockchain Council and The NYC Women in
Blockchain. She will be featured in the Forbes Italy 30 Under 30 most influential
entrepreneurs in 2020.
Giovanni Casagrande
A known name in the world of cryptocurrency. He has been in the marketing
industry for well over 20 years and have switched to the cryptocurrency industry
in 2014. He’s a writer, public speaker, investor and Marketing / Growth Hacking
advisor in more than 100 successfully projects. His specialty was Economics in
the University of Bologna and the knowledge, experience gathered from there
has helped him to manage/help many businesses in the industry. 4 years ago he
founded Black Marketing Guru, a successfully Growth Hacking startup in Italy.
Giacomo Arcaro
He has 15 years’ experience in growth hacking, digital strategy, startup and
business development. He has advised over 150 startups and has 50 managed
employees into a XII Century Church in Italy for the European biggest growth
hacking company. He holds the title of ‘Amazon Best Seller Author’ and is been
known to be one of the ‘Most Influencial Blockchain Evangelist’ with +200
conferences all over the world.
Eloisa Marchesoni
'The Most Influential Fintech Advisor' 'European Best Growth Hacker'
'Number 1 ICO Advisor Worldwide
Award'
'An influential Personality in the
Blockchain Space'
'Number 1 token model architect for
ICOs'
'Top 100 Fintech Leaders and Influencers
in Italy'