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Times have changed: Investment advisors must migrate to the digital asset universe

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Os tempos mudaram: Assessores de investimento devem migrar para universo de ativos digitais

Times have changed: Investment advisors must migrate to the digital asset universe

Tokenization is coming to the investment world and promises to completely transform its infrastructure. Advisors in this area will be one of the most affected by this paradigm shift – studies suggest that up to 80% will disappear if they don’t delve deeper into the world of digital assets.

This revolution can be felt most acutely by analyzing the movement of market giants such as BlackRock, which announced a fund tokenized in Ethereum and providing for settlement in stablecoin (USDC), raising $400 million in less than a week. Therefore, we are no longer talking about a possible future scenario for RWA tokens, but rather about a transaction that is already underway.

Why are advisors rushing to digital assets?

However, alongside this transformation, investment advisors have been carrying out the opposite dynamic and turning to other initiatives. They often play the role of banking correspondents, claiming a shortage of products on the market and low profitability – since the big platforms earn significantly from borrowers and pass on a relatively smaller share to the offices of freelance agents and thus to their advisors.

This has led to a decrease in payments to advisors, who in turn are looking for more profitable alternatives for their businesses.

However, tokenization is precisely the answer that helps redefine the role of these professionals, so that they can also be originators of more attractive products. All this movement is still pushing freelance agent offices to diversify their offerings, creating companies to sell corporate products, but which become limited at some point.

The strategy has already proved profitable in recent years, offering an alternative to the traditional products offered by brokerages, with new players taking over part of the space traditionally occupied by companies in the segment that concentrate profits.

In this scenario, companies that act as an infrastructure for receivables tokens, equity tokens, environmental assets and real assets help to add value, providing a significantly higher operating spread than today. They thus bring benefits to both law firms and investment advisors. This transformation is in full swing, leveraging changes in market dynamics and remuneration structures.

Source: Money Times

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