Full text of SmartCon speech: The future of asset management - tokenization: transaction fees reduced by 99.7%, market accessible to everyone

Hong Kong SmartCon debuted on 10/30~10/31, this article is a special reporter in the mobile area to select the topic, for asset management and fund managers, what business opportunities will be brought by asset chain, and what pain points have the 100 trillion dollar fund market encountered in TradFi, and what problems can Block chain solve? (Synopsis: SmartCon Live Direct Attack" fund managers, payment settlement companies how to use AI, Block chain for financial transformation) (Background supplement: welcome 867 trillion magnesium traditional institutional tokenization business opportunities!) Chainlink Hong Kong "SmartCon" kicks off TradFi first battle) Organized by decentralized oracle Chainlink SmartCon was grandly launched at the Kerry Hotel in Hong Kong during 10/30~10/31, welcoming many heavyweight international TradFi giants, which can be said to be the first large-scale dialogue meeting of web3 and TradFi industry milestones, and the special commissioner of the moving area is also on 10/30 The selected sessions on the day will bring readers the first time to report, this article will introduce the topic of "The Future of Asset Management". Opening with guests Sergey Nazarov: Hello everyone, welcome here, I am Sergey Nazarov, co-founder of Chainlink, we are advancing the most important aspects of Block chain adoption, namely purchasers and asset management, which is creating demand and driving the adoption of Block chain technology in capital markets and the public chain world, and we are excited to be here with accomplished panelists. I'll ask them to introduce themselves, starting with Emma. Emma Pecenicic: I'm from Fidelity International and lead digital partnerships and distribution and global digital assets in the Asia Pacific region. Andrew Wong: Hi, I'm Andrew, Executive Director of the UBSdigital asset team, working on our BS tokenization platform and leading a lot of the work on fund tokenization that we started last year. Edgar Gehringer: I'm Edgar Gehringer, CEO of HSBC Asset Management in Hong Kong, I have about 24 years of asset management experience and about 22 years of experience in Asia Edwin Roflund: I'm Edwin Roflund from Franklin Tinburton. We manage approximately $1.7 trillion globally, we launched our first tokenization fund in the United States in 2021, and we are managers in the United States. Guest list: Sergey Nazarov, Emma Pecenicic, co-founder of Chainlink, Andrew Wong, Digital Partnership and Distribution at Fidelity International Asia Pacific and Global Digital Asset Officer, Edgar Gehringer, Executive Director of UBSdigital asset team, and Andrew, CEO of HSBC Asset Management in Hong Kong Crawford: Vice President, Franklin Templeton Digital Assets Sergey Nazarov: Great, great, glad you're here, you know, we have a lot to cover, so let's jump in! So, Andrew, what do you think are the market forces that have led asset managers to adopt fund tokenization? Andrew Crawford: Good question, Sergey. We think the best thing about the market is that we have a lot of market power. This year, with the fork of the encryption and block chains, we have changed dramatically. And you know, encryption is a Block chain-based system of record, a major asset on a record storage system, and what we're seeing is that now more and more people are adopting it, seeing the benefits, whether it's cost, efficiency, transparency, interconnection with a single ledger on a Block chain-based system. We're seeing that's really pushing, you know, pushing Rise, we're going to push Rise in the next 12 months, and we hope very fast. Sergey Nazarov: So do you think it's an efficiency gain by putting the fund structure on the chain? Andrew Crawford: yes, I mean, we did a study, and it cost about a dollar to do that the way we traditionally record transactions, so it cost us $50,000 to do 50,000 transactions on the traditional route, and the 50,000 transactions we completed on the Stellar network cost only $120, so there were a lot of cost savings. But in that sense, this cost savings also lead to increased efficiency because you don't have to reconcile multiple ledgers. You don't have to remedy the problem. Everyone gets the same information in sync, so we can determine the actual cost savings. And then there are other benefits, you know, we spend about $200 million a year on remediation and settlement, and if we can move forward, if we move all the $1.7 trillion in assets, we have about $500 million at the moment, and if we move all of that to Blockon-chain, we're going to save $200 million, not including Transaction Cost, you know, it's going to be $0.0025 or whatever. So, you know, it's big. It's just that you know that the big move is to move from a multi-custodial, custodial model to a Block-based system where we don't have a third party like HSBC, overseas banks. So you know, we have to do the same challenge, we have to invest, and although it creates short-term friction, it's fun. The trust of Hong Kong regulators helps Sergey Nazarov: Thank you. Next for Edgar, what do you think are the market forces that attract you and your company to use Block Chain and Fund Tokenization? Edgar Gehringer: yes, so we're a little bit different, we're a traditional bank. Therefore, migrating traditional banks to Block Chain requires learning more about the actual benefits of Block Chain and the control power of Block Chain. How do you control it? How can you guarantee? People are very worried about this, and if something goes wrong or the trade goes in the wrong direction, it can have a huge impact. It may have a reputation, it really affects you, and there are a lot of concerns about it. Thank God, in Hong Kong, regulators really come to us and say we want to do this as regulators "We want to build a sandbox with Block Chain, but we don't have the money, but we want you to put your assets on it, and we want you to go there and put it on." So that gives us a real incentive to do that and then go there, we start with green bonds and then tokenize with gold because there's a lot of gold trading and we see a clear future going further down that path, because if regulators see the benefit of the end investor, it's about the end investor, it's about the end investor, it's not about us. Ultimately, if shareholders, as you said, benefit because we can automate reconciliations, that's actually going to really benefit regulators, which are shareholders, and that will allow our managers to focus on what we should be doing, driving performance. Sergey Nazarov: Right, so in your case, regulators saw the benefits of building these tokenization fund products and came to you. Edgar Gehringer: Yes. As HSBC said, hey, that's important. We should, and I think it's an interesting testament to how regulation works in Hong Kong, which is very similar to regulators elsewhere...