High Net Worth Investors Are Watching Crypto-Assets

We live in a world of duality. Though no fault of our own, we were born into this very segregated financial universe. My world and yours occupy the lower economic atmosphere. Here we enjoy busy lives grinding out a daily income and shouldering 97 percent of the world’s debt. The alternative to our lower world, a place we rarely glimpse, is the upper financial atmosphere. In this stratosphere resides a small group of people that control more than 97 percent of the world’s wealth. These high net worth individuals (HNW) and their associates, the ultra-high-net-worth individuals (UHNW) enjoy a very different lifestyle powered exclusively by their money and investments. High net worth individuals have very different financial service needs. The investments sought by this group and the privacy surrounding this type of client, require different vehicles, services and corporate entities.

Anyone who has spent time in Panama’s banking world or the private financial industry of Grand Cayman should have a better understanding of these very wealthy clients. It is no accident that over 40 percent of Hong Kong-listed companies are domiciled in Grand Cayman. While it is a tiny nation, Cayman is the world’s sixth largest banking center.

Panama has no central bank and operates on other country’s national currency; primarily the USD. This arrangement eliminates exchange rate risks and much of the usual “currency crisis” risks that seem to plague Central and South American countries. Panama gives a tax exemption on foreign-earned income for foreign residents. Without question, banking centers such as these attract mega wealthy clients, and they play by different financial rules than the rest of us. Mega wealthy investors require private, borderless, secure environments to store and retrieve their property. Many people now believe that the Blockchain, more precisely Ethereum based crypto-assets, powered by a decentralized secure platform, will soon change how high net worth clients store and move value.

This new innovative financial product is called a Proof of Asset (PoA™) Digital Ownership Certificate. It is a smart contract (digital) circulating online through the Ethereum Blockchain that represents a physical asset stored in a secure location. No expensive third party banker/agent is needed to access this type of product 24/7. While the physical asset remains safe with a professional vaulting service in Singapore, the digital certificate circulates online through the distributed Ethereum Blockchain. An owner, anywhere in the world can access the digital certificate, liquidate, transfer, acquire or even spend the units from any computer on earth; even smartphones.

By comparison, the new Digix platform is safer, less expensive and more convenient than the possession, transfer and sale of physical assets such as gold bullion. Around the clock access to the digital value can also be a helpful feature for those mega wealthy globe-trotting clients. Even asset managers that move funds in and out of bullion for high-value customers will find the use of digital assets much more agreeable than the vaulting and verification of physical bullion.
It takes just seconds to transfer a group of assets, such as five 400 oz. gold bars from one Digix/Ethereum client to another. Additionally, on the Digix platform the transfer does not involve significant fees, high costs or any the risks associated with the movement of physical bullion. The Digix platform can marry any physical asset safely stored in the vaults, with a PoA™ Digital Certificate. It is not limited to just precious metals.
A big change from years ago is that Digix never acts as the financial intermediary or central clearing house. Those type of centralized digital gold systems from decades past have come and gone. Every
Digix user is recognized as the legal owner of their physical assets. That information is recorded over the Blockchain. Through the process by which Digix operates, users can only grant Digix the authority to deposit or remove physical assets on a client’s behalf. The Digix user always maintains legal ownership over the stored assets within the custodial arrangement.

Digix is a company changing the way businesses view the storage and circulation of assets. Their formula includes value, such as precious metal, stored in a professional vault and the issuance of PoA™ Digital Certificates according to the bullion’s weight. Grams, kilos, even digital tokens representing amounts as small as .001 gram, can securely circulate over the Internet through the Ethereum Blockchain. The digital units directly correspond to the weight of bars held in the vaults. The Digital Ownership Certificate certifies the agreement between user, vendor, custodian and the independent auditor. It also provides a complete history showing the chain of control and all audited reports. The information from this process, stored online, guarantees that the user’s purchase of bullion, along with the custodian’s metal storage, and regular inspections by the auditor have all taken place.

Finally, for all those UHNW and HNW individuals, Singapore is a very savvy place to do business.
 No GST/VAT on bullion transactions.
 No sales tax on bullion transactions.
 No capital gains tax on bullion sales.
For anyone that has not yet acquainted themselves with Digix’s innovative new way to manage financial assets their website. http://dgx.io