5 Years From Now The ‘Average Portfolio’ Will Have Digital Assets, Says Custodial Bank
Blockchain, Opinions

5 Years From Now The ‘Average Portfolio’ Will Have Digital Assets, Says Custodial Bank

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Jay Biancamano, managing director of digital product and development at State Street, recently said in an interview that the ‘average portfolio’ will include digital assets in 5 years. More illiquid assets like real estate, intellectual property, or even art will soon be a staple when tokenized. 

When will tokenized assets become the ‘new normal’ in portfolios? According to Jay Biancamano of State Street, we could see such a development within the next 5 years. State Street is a custodial bank which recently began to pivot towards crypto-assets.

Currently, most portfolios today are based on equity, bonds, and cash. However, Biancamano believes that this will soon begin to change as non-traditional assets take center stage—and traditional assets become tokenized. It’s a development that many in the security token industry have been expecting for years now.

As of now, however, clients are still skeptical. As Biancamano told The Block recently:

“That conversation has shifted and resulted in more inbound calls from issuers looking to provide these assets to our clients, however clients are still skeptical,” he said. “It is a little clunky or cumbersome to trade them, and not as seamless as our clients are used to.”

Many platforms are currently looking to tokenize assets traditional investors are familiar with, like gold or oil. However, we are still a few years away from this becoming the new normal. Still, it’s good news for those of us who are long-term bullish on the promise of digital assets.

Do you agree with Biancamano’s assessment? Let us know your thoughts below in the comments. 

Image courtesy of FramingHamSource. 

October 29, 2019

About Author


Tim Fries Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions (IoT).