With the advent of virtual assets, traditional assets’ demand is starting to take a hit. However, a huge difference between the numbers of users of both the instruments is due to lack of awareness building is a very long process. Until virtual assets take their perfect form in the market, traditional assets are at their Peak, the global infrastructure will hopefully be improved to a great extent for traditional assets to be converted into digital format. In the long run, if virtual asset gains global traction, traditional physical assets will surely be less demanded as a result. Although virtual assets are quite recent to be public however the diversification does not need to be quite such a roll of the dice as regulatory bodies advance the regulations.
(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.
ABX has received in-principal approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)