The following is a editorial offer by Shane Tan, Vice President of Institutional Sales at Finalto Asia, an innovative Prime Brokerage providing liquidity and Fintech solutions.
Crypts are often described as “digital gold”, a phrase that records two seemingly contradictory but complementary ideas. On the one hand, they incorporate innovation and technological progress, the “digital” aspect. On the other hand, cryptocurrencies such as Bitcoin are built on a predetermined supply lid rather than inherent value. Supporters of Bitcoin’s promotion as a form of hard money, inherently resistant to inflation and positioned as a possible safe asset, such as gold.
Whatever the view of Crypto’s long -term perspectives, this matching technology and lack is quite natural. Gold, on the other hand, is regarded as a persistent, traditional and decisive physicist, the very characteristics that support his appeal as a safe shop. It is no wonder that Defi projects, encryption exchanges and stables rise dominate the titles. However, innovation in financial instruments is not limited to new asset courses. From synthetic pairs of coins to innovative products traded on stock markets (including ETFs), the same technologies that have converted digital assets also reform access to established, including gold itself.
Innovation remains central to the evolution of our industry. Adaptation of our bids to meet the changing needs of customers is essential to a rapidly changing economic and technological landscape. But innovation does not need to mean neglecting traditional assets in favor of the latest trends. Some of the most effective uses of technology are found in the manufacture of established assets of the most affordable, flexible and better tailored to the markets in which customers operate, especially in the world’s high speed FX.
Digital gold or making digital gold?
Gold is the exemplary example. As an asset, it may mean refined bars locked in domes in New York, London or the Swiss Alps. But it also includes a number of markets, such as ETF, derivatives and structured products, that provide investors effective access without requiring physical possession. While the design of these instruments requires significant expertise, the end products can be functional to use. For example, synthetic gold ETFs allow investors to monitor the price of gold without the cost or complexity of metal retention.
In the forex market, market participants are familiar with gold products ranging from point transactions and forward to synthetic pairs of coins. However, as market conditions evolve, customer needs need to be changed and regional demands of demand, innovation must be in line with the rhythm. Continuous improvement of an offer to meet real demand means both the prediction of changes in the market structure and the listening of customers’ goals. At Finalto, we see the portfolio of metals as an innovation platform, combining flexibility and seamless market access and adaptation of products to the environments in which they are negotiating.
Whether it develops an instrument of gold-yen (XUJPY) to support the compensation of JPY reports, or in promoting pricing in grams, ounces and taels to align with the Asian market, we continue to look for new ways to make even our most established assets.
Innovation, responsible
It’s an exciting moment for industry. Blockchain, AI and other emerging technologies reshape the way investors deal with markets. But innovation is not about replacing the old one with the new one, it is about optimizing the way in which market participants have access and manage reports. The new asset lessons offer new opportunities, but traditional ones can be just as dynamic when approaching imagination and strategic vision.
And while our industry thrives in innovation, it comes with responsibility. Whether you enter a new cryptographic asset or a peak of gold trade, the same timeless principles apply. The predominant mandate is to act in the customer’s interests, ensuring that each solution is based on transparency, strong risk management and a proven need in the market.
For more information on the offer MultiBrency MultiBrency Metal offered by Finalto, e -mail sales@finalto.com.