https://unsplash.com/photos/HUiSySuofY0 by James Pond

The Problem

Asset Management is in the hand of a few:

• 79 trillion USD managed

• > 60% in the hand of 165 asset managers

• Blackrock manages more than 8% of all assets

• Top 5 Asset Manager have 20% market share

• Regulation hinders small companies

https://unsplash.com/photos/9wrFaeqMJBg by Alok Sharma

Asset managers become signal providers.

Asset management teams become independent, the asset management market will become decentralized and fragmented, clients will hold the assets directly.

https://unsplash.com/photos/l3r5Et4YhIs by Zach Savinar

Passive Asset Management mixed with decentralized technology will disrupt and fragment the current asset management industry.

https://unsplash.com/photos/MxFjwuFFDi4 by Richard Felix

Small asset managers are hindered by regulation.

Now, they can start without assets, just creating asset management ideas.

https://unsplash.com/photos/iI4sR_nkkbc by Johnson Wang

The tokenization of assets will change the landscape of investable assets fundamentally.

Smart Contracts can be programmed to transfer assets automatically in the wallets of the clients.

Be happy, the probability of default of an asset manager just vanished. Funds are no longer needed, the assets stay with the clients.

https://unsplash.com/photos/dV9ZfzLxaQ4 by Tobias Cornille

The asset manager is becoming a pure SaaS provider, i.e. a Signals as a Service provider.

Will these signal providers still be regulated by the financial regulators?

These signal providers do not handle any assets anymore, they just deliver signals. The transaction itself is taken care of in the wallet of the subscriber of the signal, i.e. the client.