Prepared for Dré L. | Delivered July 8, 2021
NFT's in the Financial Services Industry
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Provide information on the potential of NFT's in the Financial Services industry. An ideal response would include:
Speculative ideation, examples, reports or analysis about NFT's as it relates to the Financial Services industry by specialists and thought leaders in the field.
How NFT's might be used by banks or credit card companies, or what they can be used for.
How NFT's will change the Financial Services industry in the future.
The initial round of research indicates that data availability is adequate on this topic.
Potential of NFT's on the Financial Services Industry
ownership of intangible property
, which the Financial Services industry also deals with. Anything that benefits from having its ownership more easily
verifiable, transferable, and interoperable
with the block chain has the potential to be represented by an NFT. As a result, NFT's
present an opportunity
for the Financial Services industry.
Financial NFT's are expected to be the "
largest single use
of NFT technology so far", and they include
tokenized real-world assets, and
unique baskets of tokens
, among others.
Decentralized finance presents benefits in the Financial Services industry
such as reduced costs, efficiency,
market participants being able to function without intermediaries and democratization. However,
consumer protection is uncertain.
NFT's, together with decentralized finance products, can lead to the
formation of unique financial services
such as NFT-backed loans,
investments and liquidity mining.
The increasing popularity of NFT's is leading to the prominence of
Digital Leger Technology (DLT)
, which may impact how banking and payments industries do their business. This technology im
proves operational costs
reduces the amount of time
required for several processes.
In the insurance industry, NFT's allow for information to be stored in a
secure, safe, and manipulable
way. They also facilitate engagement with customers that see NFT's as
having a connection
to their digital assets.
Our initial research focused on assessing information availability related to the potential of NFT's in the Financial Services industry.
We were able to identify its potential in several aspects of the industry such as insurance, banking and unique financial services.
We were also able to identify the benefits that NFT's present to the industry as well as their expected impact on the industry.
Initial research indicates there may be additional information on the positive and negative impact of NFT's on the Financial Services industry, use cases of NFT's in the Financial Services industry, as well as examples of Financial Services companies that are incorporating NFT's.
The research will have a global focus in order to provide as much detail as possible.
Please select one or more of the options provided in the proposed scoping section below.