Future Options: Real World Assets

Real World Assets - Tokenised Securities

Venture capitalists are currently funding many next-generation platforms for expressing real world assets and securities in tradeable digital format, give the clear advantages blockchain technology offers over TradFi 'plumbing', all of the data-intensive 'back office', custodial and corporate registry administrative costs and uncertainties are pretty much eliminated, vastly reducing costs and increasing transparency dramatically compared to TradFI. Bernie Madoff could not have operated his TradFI Ponzi scheme for decades operating on a blockchain platform.

Real World Assets - Bond Funds

Bond funds are one of the biggest of all financial markets in terms of value invested.  Bonds offer a mix of good capital preservation and (real, but sadly fiat) yield. Mixing lower volatility, income-generating bonds with shares is the primary way most retail TradFi investors manage their portfolio risk. Many quality fiat-denominated TradFi bonds are already registered on the Ethereum blockchain:

Consistent with PowerPool’s market positioning as offering both bullish AND defensive crypto-based options for smaller investors, a real-world bonds fund on crypto rails would be a VERY newsworthy option to offer.  A fiat bond fund is low volatility and highly defensive because it is relatively uncorrelated with crypto holdings. The entire crypto market could go to zero, and the bond fund would still have value and yield in fiat terms.

Once PowerPool is ready to face the world, launching a bond vehicle on crypto rails for retail investors would be major global financial news. The TradFi financial press, Bloomberg, Forbes etc. would be all over it, as would institutional and personal investment journalists. PowerPool would become known throughout the TradFI investment world, practically overnight. That alone is the best reason to start working on it.

Real World Assets as NFTs

The potential of NFTs to represent real world assets that have both value and yield, like stocks, bonds and real estate will be a massive value market, bringing pretty much all of TradFi onto crypto rails. PowerPool should already be positioning itself to be able to work with traditional investment banks to float pools of real world assets represented by NFTs and managed by PowerPool as ExchangeTraded Funds (ETFs). Launching real world products somewhat uncorrelated with crypto will add to the perception of PowerPool as offering defensive, wealth preservation elements to overall portfolio balancing options.

PowerPool should be monitoring code bases under development to link real world assets to on-chain investment pools. See for example, Pandora Finance