B52 is blazing a trail as the ‘Any Assets’ bank, but what does that mean in practice?
The dictionary says that an asset is, ‘A useful thing or a person’, so we can describe a goalkeeper as, ‘An asset to their football team.’ Bankers see assets as, ‘Any item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies’. And in financial accounting, an asset is an economic resource, where anything tangible or intangible that can be owned or controlled to produce value, and that is held by a company to produce positive economic value, is viewed as an asset.
Hmmm, so an asset covers everything from a footballer, through to a diamond ring, to the old sports car you have stored in the garage and that you hope to renovate one day. Assets can even comprise abstracts such as goodwill, and innovative thinking and branding.
How do you digitize a reputation, or a sports car?
Well what any bank is looking to do is assess the wealth of a customer. Traditional banks have done that through fiat currencies, and looking at investments held in those currencies. In addition, fixed assets such as equipment and buildings have a real market value which can also be assessed. The result of this is that a customer has one or more fiat currency accounts which allow them to trade and transact, to loan money and borrow money, based on their assets, their ‘worth’.
Some of the new challenger banks are now proposing a similar process for cryptocurrencies. Well, at least that’s something, but it’s really just substituting one system for another – out with the old, in with the new. The problem is that in the real world no customer is going to operate in only one mode, of either fiat or crypto. It’s not realistic, and it’s not what customers demand of their banking services – but it’s all they’ve being offered. Until the advent of B52.
So assets can be tokens, fiat or cryptocurrencies, or any other digitizable property, and uniquely, B52 is able to process these within the same account, so that, as the dictionary helpfully adds, ‘Assets represent value of ownership that can be converted into cash.’
Another upcoming type of asset is the Security Token. 2019 will be the year of the Security Token. An investment product taking advantage of the respective technology used in Initial Coin Offerings and legal frameworks, which have been used for financial market instruments, i.e. bonds, convertible loans, etc. in the past.
The B52 Security Token will be a convertible loan with yearly interest payments. After 3 years the Token can be converted into equity. The B52 Token will have an approved public offer prospect like a classical bond and it will offer full transparency, legal security and frameworks, direct access to capital markets and liquidity, as well as managing all assets, the customers wealth in one account – the B52 account.