Swiss blockchain company PassOn have partnered with New York-based fintech firm Synechron to build an infrastructure for the transfer of digital wealth.
The collaboration is aimed at creating the first fully-regulated blockchain inheritance ecosystem and address the needs of high-net-worth and mass-affluent individuals to transmit digital assets quickly and efficiently and transform the process of transferring wealth across generations.
This is likely to be an area of heightened importance for both the high-net-worth and mass-affluent client base of financial companies as the prevalence of digital assets continues to increase.
Alongside the more mainstream areas such as share trading and investment profiles, there is wealth held in crypto wallets and social media accounts.
This presents the potential problem for financial advisers over the fate of revenue generated from cryptocurrency or a Facebook or Instagram account when the owner dies.
PassOn and Synechron have sought to address this, developing a succession-planning app based on distributed ledger technology (DLT) capable of transferring digital assets.
A new and intriguing use of blockchain technology, PassOn and Synechron hope to pave the way for straightforward and efficient inter-generational transfer of digital wealth in the years to come as the demand for it continues to grow.
“As new, digital assets gain market share, it’s essential for us as an industry to focus on ensuring clear ownership and the transmission of that ownership to protect asset holders through a proper infrastructure, strong governance and robust solutions”, says Valerio Roncone, head of future business at SIX Securities & Exchanges and a PassOn, board member.
“PassOn is an innovative company solving a real challenge – asset inheritance – in the digital age,” he says.
“The partnership with Synechron allows us to source the best expertise during the ramp-up phase and to quickly scale integration capabilities to respond to the growing demand for our technology in the B2B/B2B2C space,” Stephan Wippermann, CEO of PassOn adds.