These Are The Latest FinTech Predictions For 2019
The FinTech industry has been growing over the last few years. Virtual currencies and Bitcoin (BTC) has fallen in 2018 but development teams behind it continue to perform and do a good job with it. For 2019 there are interesting trends that will mark the innovation related to fintech companies.
One of those trends is related to Securities Token Offerings (STO). Back in 2017 and 2018, the number of Initial Coin Offerings (ICOs) and funds gathered by them raised exponentially. Hundreds or even thousands of ICOs were launched to the market at that time. However, the US. Securities and Exchange Commission (SEC) and other regulatory agencies have been trying to control and regulate the market, affecting ICOs. Now, there are just a few hundreds of ICOs being released each month.
With STOs it will be possible for businesses to raise money and issue tokens as well, rather than stock certificates. There will be new exchanges built in order to trade these digital securities.
Another important trend is related to the tokenization of different currencies. There are several stablecoins that have been issued during 2018. Some of them are pegged to the Euro while others to the US Dollar. Other fiat currencies will be tokenized as well allowing merchants to reduce their dependency on credit and debit cards that have very high fees to operate.
Lending activities will also be tokenized. This is one of the most interesting aspects of blockchain technology. At the moment, it is very complicated to make loans and trading them. This is why blockchain technology could make this industry much more efficient and faster.
Real estate, cars, precious metals and art pieces can also become tokenized. There have been several projects that aimed at tokenizing daily things or assets that before were almost impossible to be traded in such an easy way using blockchain technology.
The same can happen with stocks and bonds, companies. It might be possible for exchanges to start listing assets from different markets and traded against different currencies just by tokenizing them. Although this might not be easy, there are some exchanges such as tZero that announced the listing and trading of tokenized private securities.
Not everything is so positive about these issues related to an improvement in tokenization and the fintech space. Indeed, there will be fraud in asset tokenization. There will be several companies and individuals selling tokenized assets without having registered the underlying asset with a regulated and audited agency.
Regulatory agencies in the United States will increase their market presence trying to better control the market, shutting down illegal ICOs and fraudulent companies. This would help individuals fell that they are protected in a very unregulated space.
New businesses and infrastructure for companies are going to grow as well. We are talking about custodians and other entities that will be offering services to users and other enterprises. Investors want to have their tokens secured without having to be thinking about them at all times.
Some of these companies involved in creating better infrastructure for the future of digital assets are the Intercontinental Exchange (ICE), Fidelity Investments or Nasdaq. Many other firms will clearly enter the market and start offering their solutions as well.
2019 is a year in which all these things will be debated and discussed among virtual currency and blockchain enthusiasts. Furthermore, virtual currencies could start to recover from the bear market and help new individuals enter the space.