The Assetizer · 4 March 2024
Non-bankable Assets: A 78 Trillion Dollar Market
Excited to share an interview of our co-founder and CEO Philippe A. Naegeli in SPHERE Media discussing Assetization: The Genesis of the Book, the $78 Trillion Opportunity, The Role of GenTwo.
Article originally published in Germand and French in SPHERE on February 29, 2024:
English translation:
Why did you write a book on the topic of assetization?
Our original dream at GenTwo was to create access to all assets. Today, our platform enables all financial intermediaries, whether large or small, to turn any asset and any innovative investment strategy into a bankable financial product. We only fully realized the extensive possibilities of assetization when we observed how our clients were using our platform. At that moment, my co-founder Patrick Loepfe and I realized that we had to write this book.
Explain to us the concept of assetization...
The word is a combination of "Asset" and "Democratization". As a process, assetization describes the democratization of the development of financial products and the potential to unlock trillions in previously untapped value. As a vision, assetization stands for the democratization of investment opportunities, allowing people to invest in what matters to them, no matter what that may be. This creates not only monetary but also personal and societal value in ways that were not possible or even unthinkable before.
The certification and tokenization of real assets is a mega-trend: where is it leading?
The world of non-bankable assets harbors a hidden universe full of opportunities. This includes assets that are beyond the traditional banking sector, such as alternative investments, private market assets, and even more exotic assets like digital assets and passion investments in art. These are typically illiquid, hard to access, and often expensive but also offer enormous opportunities. According to an Accenture study, the value of non-bankable assets is 78 trillion US dollars – a considerable sum that may even be underestimated. While tokenization offers a way to convert such assets into investable formats, digital assets have their limits. Through assetization, we can make any asset bankable, investable, and accessible through the traditional banking system. We see tokenization as a subset of assetization; it is just one of the methods of assetization.
What does this mean for investors?
New opportunities! Imagine, even smaller investors could suddenly dive into exclusive hedge funds and private equity deals or unique passion investments like rare artworks and vintage cars. This leads to more diversification and increases the chances of returns. It allows even small investors to invest in their beliefs, which is the true power of assetization.
What role does GenTwo want to play in this development?
At GenTwo, we see ourselves as pioneers of assetization. Our platform enables financial intermediaries to easily securitize any asset and investment strategy and place it as a bankable financial product with an ISIN on the financial markets.