Jonny Fry / James Tylee of Digital Bytes by Team Blockchain on Cyber.FM 22nd December 2021

Jonny Fry / James Tylee of Digital Bytes by Team Blockchain on Cyber.FM 22nd December 2021

Jonny Fry / James Tylee

About this episode

Jonny Fry is joined by James Tylee to discuss this weeks Digital Bytes newsletter featuring special guest: Peter Habermacher, CEO, Aaro Capital

We Discuss:

Blockchain technology is increasingly impacting on businesses - there has been a growing clamour for businesses to use Blockchain technology and the digital assets that this technology can create. The adoption and different means in which blockchains can be utilised by companies is increasingly expanding across a variety of industries and will undoubtedly have an impact on the way that companies interact with their suppliers, shareholders and customers.

Blockchain technology targets the bank that settles $6trillion a day in FX - HSBC’s Blockchain-powered Foreign Exchange (FX) settlement enables FX trades to be carried out more transparently, with less risk and with lower costs than the current Continuous Linked Settlement (CLS) bank solution. Stronger compliance, less risk and lower costs - surely that will gain the attention of regulators, compliance officers and board directors.

As inflationary pressures rise, where will investors’ capital move to? - inflationary pressures are rising and, due to the recent worries regarding the Omicron variant, interest rates are not being increased whereby adding to additional inflationary concerns. Equity markets have risen now for almost 9.5 years so where will investors go as interest rates are increased, as there is now an even wider range of alternative asset for investors to consider? Do your homework now so, as and when equity and bond prices have a pullback, you will know if you wish to diversify your investments into the plethora of new assets on offer.

Global debt spirals whilst bond markets undergo transformation - according to the IMF, the amount of global debt rose to over $225trillion and this could prove to be problematic as interest rates rise. However, we are seeing real innovation in the way that debt instruments are being created and issued using Blockchain technology, which offers the potential for small and medium sized firms to consider creating their own smaller bond issues thus allowing them access to a new pool of capital to help finance their firms.

Alternative Investments and Tokenisation - investing in alternative assets is usually reserved for high-net-worth individuals and institutional investors. It is also often a slow and paper-intensive process, one that is out of date relative to the new retail investing apps. In this note, we discuss how Blockchain technology can enable a more efficient and accessible process through tokenisation. Tokens are digital representations of assets which are issued and traded within a distributed ledger. They allow for faster and cheaper transactions, greater liquidity and access to a wider base of investors, as well as potentially greater transparency for managers, clients and regulators.

May we take this opportunity to wish you all best wishes for the festive season and hope that you all stay safe and enjoy a break with friends and your families.