In the previous article, we have discussed three services a Digital Asset Marketplace (DAM) can provide to security token issuers. Now, let’s dive into the benefits it can offer to security token investors. Before going into the details, we have listed the standard structure that a DAM provides to investors in this chart below:
1. Access to curated offerings
For investors, the main benefit of a DAM is to easily discover curated investment opportunities. The marketplace operator selects issuers of securities depending on its positioning and the value they offer to Investors.
With this selection of investment opportunities, the investor can now access curated offerings and participate in projects that meet their preferences and ensure they only subscribe to projects based on their level of quality. And the whole process is fully digitized, from subscribing to offerings, to making payments, to signing digital signatures. Not only does it facilitate the process, but also provides a smooth digital experience for investors.
A DAM must be compatible with the most adopted blockchain identification systems used on the market. So it allows Investors to directly use their Blockchain Account to prove who they are without submitting the same information for each token. As a result, investors can access various offerings without having to repetitively provide the same information, for example for KYC/AML checks.
2. Manage their digital asset portfolio
The DAM also provides a real-time view of their digital assets through the investor dashboard, enabling investors to better manage their portfolios. While some investors may be already using software for their assets such as properties and real estate (perhaps purchased through websites similar to https://bernardrealestategroup.com/southeast-bend-or/woodside-ranch/), digital asset management requires separate tech features to improve investment portfolio. Investors can utilize this data to develop a cohesive investing strategy based on their goals, timeline, and risk tolerance.
In addition, a built-in communication tool can help investors easily track the announcements and status of their securities on the platform, which helps investors better allocate their assets and adjust their investment strategies accordingly. Being able to manage all their investments on one platform can also enable investors to take a comprehensive look at their portfolio, which can make it easier to conduct different tests and analyses as a whole; for example, an ESG analysis (visit their website to know more) can enable investors to make informed decisions on investment strategies and portfolio diversification.
For each security token, investors can access the details of the asset, his positions, transaction history and other information.
3. Improve liquidity
Being able to manage digital asset portfolios is important for investors, but equal importance is the transferability of these digital assets. After analyzing the portfolio, investors can then go to the secondary market on the DAM to rebalance their portfolios by selling and buying digital assets on a peer-to-peer basis. Depending on the services fee set by the DAM, the transfer fees can be as little as a few cents and take only a few seconds to execute, compared with days or weeks in the traditional financial world.
Ultimately, DAMs bring better liquidity and transferability to their investors through an easy-to-use interface that is also friendly for non-blockchain investors. This is crucial for investors because, with the recent hype about digital assets, more and more investors are turning their eyes to this market and are getting ready to participate. Now more than ever, there is a need for a non-crypto newbies-friendly marketplace. Such a platform makes it easy for traditional investors to take part in the new era of investment to subscribe, manage and transfer their security tokens.
We’re looking forward to explaining more in the next article. If you can’t wait, this is an excerpt taken from the ebook we published with CoinTelegraph, download here.