What Leo Trust specialised in a few years ago was a much-discussed topic at this year's World Economic Forum: Non-Fungible Tokens, NFT. Leo Trust shed light on the fascination of NFT from an investment perspective at the WEF in Davos – and captivated the numerous guests with a live tokenization of a work of art.
NFT – three letters that are worth your consideration.
NFT, the acronym for Non-Fungible Token, no longer serve niche markets. NFT are attracting attention worldwide – and are also finding great favour in traditional industries.
Art market and financial industry
A prominent example is the global art market. In the meantime, even the most renowned auction houses such as Christie's, Sotheby's and Phillips de Pury & Company are among the weighty NFT market players. Dr. Roderik J.P. Strobl, Relationship Manager Key Clients, Leo Trust Switzerland, knows that (art) NFT have also long since arrived in the financial market: «An absolute hype has arisen around NFT, quite clearly. The current market sentiment is that NFT are not a fad that will soon fizzle out, but an interesting investment opportunity for those investors who believe in the technology – and bringing a positive change to our society.»
The art market, to stay with the example, offers new and promising opportunities in terms of NFT. At this year's World Economic Forum in Davos, Dr. Roderik J.P. Strobl explained the advantages from an investment point of view: «The art market is interesting for diversification reasons, among other things, because it has a low correlation compared to other asset classes.»
That is not necessarily new. What is new, however, is that thanks to NFT, interested investors of different backgrounds and technology-savvy people are also gaining access to the art market. This is attracting a new generation of investors and unearthing new investment opportunities. The result: a revived art market with an even stronger demand.
Foundations and trust holding NFT
NFT also shape the everyday life of Leo Trust: «Many clients are increasingly relying on our expertise in digital assets. And it shows time and again, trusts or foundations are excellent options in wealth planning – also in relation to NFT.»
NFT are ubiquitous and have become an integral part of the investment world. But hand on heart: Have you ever asked yourself how exactly tokenisation works? At this year's WEF, Leo Trust not only shed light on the fascination of NFT from an investment point of view – but, in cooperation with ADM Trusted Advisors (legal aspects) and Curio Capital AG, also captivated the numerous guests with the live tokenization of an art painting.
Do you have any inquiries? Dr. Roderik J.P. Strobl, Relationship Manager Key Clients, will provide you with the information you need.
–
This article is aimed at providing a general overview and summary of the issue. It is non-binding, and does not and should not be taken to constitute legal advice.
In this article, Dr. Strobl explores the growing importance of smart contracts and the significant growth in the Crypto Valley, which is gaining importance.
Investors and trustees need a clearer assessment of their investment risks, which calls for new risk assessment models and tax regulations for crypto assets.
