1. Which problem is HighCastle trying to solve?
The rise of the Initial Coin Offerings (ICOs) has shown that the traditional exchanges and crowdfunding are unable to cover the demand from SMEs amongst new early-stage issuers and global investors. In fact, the crowdfunding market is undeveloped – less than 5% of alternative finance in the world belongs to equity-based crowdfunding with 95% of activity taking place at p2p lending platforms an annual turnover of $ 145 bn. The reason for such an uneven split is due to the absence of a secondary market for crowdfunded equity. Both p2p lending and the ICO market do have a secondary market with a moderate level of liquidity. read more
While financial services have largely been trapped in the Jurassic period, technology brings the future onto the horizon driven by thousands of futurists and tech evangelists. They already live in a free, decentralised individual-based cyber world and each day open small doors to bring us in. In the next few years, financial services will rapidly transform as tech rewrite the rules. What should we look for in the next period? Better terms? Improved customer experience? I think what we really need to keep our eye on is the digitalised securities arena. It becomes an available investable asset class for the very first time and brings with it the promise of enormous potential. Let’s have a look at the trends!