Blockchain, Digital Assets and Crypto Assets - Keyfacts and Opportunities

Crypto assets like Bitcoin, Ethereum and many others use public ledgers shared over the internet to prove ownership of digital assets. They can be transferred in seconds without the need for intermediaries or permission from any centralised authority, making them an important component of financial infrastructure. While some might argue there is a cloud of hype obscuring potential use cases of such assets, they provide an indisputable potential for innovation. This is for example proven by 40 million European citizens (according to the European Central Bank) and 40 million US citizens (according to the White House) that already now own crypto assets. Based on smart contract platforms like Ethereum, assets such as traditional currencies (i.e., stablecoins) or financial instruments (e.g., shares, debt) can be tokenised. Even more so, decentralised finance (DeFi) protocols can form the future capital market and non-fungible tokens (NFT) will be used in many domains (e.g. intellectual property, art, digital twins).

This programme aims to introduce participants to the underlying technical mechanics of crypto assets, their potential use cases for finance and businesses, as well as aspects of web3 and the metaverse. Furthermore, this seminar will deepen participants' understanding of the two top-tier crypto assets, Bitcoin and Ethereum, selected DeFi protocols and their underlying protocols from a technical, economical, political, and social perspective. 

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Digital securities such as tokenised funds, tokenised debt, or tokenised shares take the concept of crypto assets a step further. Not only are they a form of ownership represented on a digital ledger, but much like traditional securities, they typically provide voting rights, are tied to a share of profits, or something similar - and they have to be issued in compliance with various regulatory requirements (e.g., securities prospectus). Digital securities are superior to conventional securities since they can be traded 24/7, globally, and they can technically be issued without legacy financial infrastructure. They give investors greater control and allow for a higher degree of portfolio diversification while allowing companies more flexibility with regard to fundraising approaches and business model innovation. With the introduction of the digital euro, further significant efficiency gains can be expected since trading (i.e., delivery vs. payment) of such assets can potentially take place without clearing houses. Digital securities are an important component of the future of financial markets.

This programme introduces participants to the underlying concept and technological basics of digital securities, covers a variety of potential use cases, and discusses legal considerations and challenges related to the issuance of digital securities (i.e., Elektronisches Wertpapiergesetz, eWPG). 

Read more: Digital Securities on Blockchain Systems

Crypto assets are a new asset class which has grown to hundreds of billion US dollars. This starts with Bitcoin and Ethereum, which are the top 2 crypto assets. Such tokens can be purchased directly via crypto exchanges or indirectly with exchange traded products (ETPs). Additionally, hundreds of crypto funds and crypto indices have emerged with various investment strategies. Lastly, decentralised finance (DeFi) applications provide further investment possibilities. All these opportunities represent many new investment opportunities which require solid asset management approaches. Some of these investment opportunities are correlated with others, some are not.

Furthermore, thousands of tokens exist in various domains. Therefore, understanding and assessing the various types of tokens is paramount. Once having purchased these tokens, they can be stored on crypto exchanges. Or, alternatively, private custody can be maintained at the discretion of the investor. Using the words of the European Commission, these are unhosted wallets.

This programme introduces participants to the entire universe of investment opportunities in the domain of crypto assets. It also sets the context for various investment tactics, for example directly via the purchases of tokens or indirectly via wrapping crypto assets in publicly listed or private investment vehicles. Finally, it also discusses selected legal considerations and challenges related to crypto assets.

Read more: Asset Management and Investing in Crypto Assets