For over a decade, the rise of digital assets has been a source of global fascination. Since the original bitcoin whitepaper was released in 2008, a myriad of crypto-asset projects followed suit. This trend is poised to continue as a growing number of users enter the ecosystem.
According to a recent report by the Cambridge Centre for Alternative Finance, there were 35 million verified crypto users at the end of 2018; representing a 94% increase since the end of 2017.
Another report by SharesPost (Mid-Year Crypto Survey) highlighted that 57% of investors and 66% of consumers believed their crypto-assets would appreciate in the following 12 months. Combined with unique crypto wallet holders, these numbers point to ever-increasing confidence in the tokenised economy.
Driven by the desire for greater market efficiency and returns, holders of both traditional and digital assets alike are demanding solutions that integrate the realms of both old and new finance. For instance, many are calling for additional value to be unlocked in global capital markets by making historically illiquid assets more liquid through digitisation.
Further, by establishing the digital infrastructure necessary to support fractional ownership, previously unattainable assets will be within reach to more people than ever — diversifying markets and improving accessibility. With a record $79.2 trillion in assets under management (AUM) as of 2017, it’s clear that investors are more active than ever. If only a fraction of the capital inflows seen recently were directed to digital assets, the ecosystem would see exponential growth.
But to truly realise the benefits of tokenisation, effective facilitators are crucial. This is where Mode enters the equation. Unlike many other unilateral platforms, we are working to build an ecosystem that combines the best of traditional and digital finance.
The Mode Approach
Based in London, the world’s financial hub, the team at Mode has over 130 years of combined experience in the UK and European financial services sector and has worked with some of the most forward-thinking regulators in the world. We understand, therefore the intrinsic value of regulation and the security it gives to our consumers.
We believe that to accelerate the transition to a truly digital financial system, the world must have access to digital-asset friendly services and products that everyone feels safe using. With the appropriate regulatory measures in place, companies and jurisdictions can work together to boost security and investor confidence in this new asset class. We believe it is crucial that this work includes the development of enhanced tools that prevent money laundering and terrorist financing.
That’s why at Mode we are determined to work hand-in-hand with regulators across various jurisdictions, including the UK and Europe, building on their trust and know-how as established institutions.
“We are committed to creating a safe ecosystem of products and services that makes lending, investing and borrowing more accessible to everyone; whether they hold traditional assets, digital assets or both.”
Mode’s Digital-Asset Solution
The first product we are about to offer is a crypto-backed lending solution for businesses. Our aim is to help businesses alleviate their financing needs by leveraging the value of their digital assets. We are offering early access rates to a limited number of customers. Sign up to modeplatform.io.
But our solution will not stop there. With tokenised assets estimated to grow from $900m in 2018 to $2.7bn by 2023 our goal is to become a lender for any tokenised asset, be it a house, a piece of art, or even valuable metals such as palladium. We believe that digital assets should carry the same financial benefits as traditional assets.
Consumers demand speed, reliability and convenience; and we trust our approach will create fluidity between the old and new financial worlds while establishing trust and increasing consumer confidence.