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August 11, 2022

UK wealth managers have massive crypto potential

By Patrick Brusnahan

There is massive opportunity for UK wealth managers when it comes to crypto, according to digital banking solutions and wealth management technology firm Avaloq.

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Disruptive start-ups to watch out for

2021 was a record-breaking year, with more businesses breaking into the billion-dollar club. Many start-ups have achieved or retained the unicorn status by the end of the year to reflect nearly a fivefold growth from that in 2020. This boom can be linked to a financing frenzy spurred by the quick adoption of technology and innovative solutions by start-ups gaining traction in response to the pandemic. However, the start-up ecosystem is now facing turbulent times for fundraising as investors seek long-term business strategies, valuations, and a route to profitability amid uncertain market circumstances. Nevertheless, 2022 has the potential to carry forward the momentum with multiple entities having a fair chance of being in the right place when aided by the right technologies. GlobalData leverages the power of alternative data to examine the health of start-ups across multiple dimensions including the quality of their innovations, market presence, and the funding they can attract. This helps our clients to analyze the disruptive potential of start-ups for early alliances, investments, and acquisition prospects to develop future-proof strategic roadmaps for a competitive advantage. Read our report and gather insights on the following topics:
  • Recent Unicorn trends
  • Unicorns in 2022
  • Future Unicorns
  • Start-ups to watch out for
Start-up ecosystem outlook by top geographies
by GlobalData
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Avaloq’s research states that 89% of UK investors who either don’t own crypto or currently invest via an exchange would seek to invest in crypto with their financial provider if given the chance.

Furthermore, there is a gap as 79 of crypto investors buy and sell through an exchange. Only 24% invest via a traditional bank or wealth manager.

In addition, the biggest reason for not investing in crypto (33% of respondents) was uncertainty on how to even enter the market. 31% believed the market was too volatile.

Uncertainty on how to get started in NFTs was the most popular reason for not investing in them.

Nils Bulling, head of strategic innovation, ecosystem and digital assets at Avaloq, said: “These findings highlight the immense potential for wealth managers to integrate digital assets into their offering to act as the bridge between centralized and decentralised finance. Especially as digital assets become more easily tradeable – both in the real world and in the metaverse.

“In the future, a digital assets offering will become increasingly important to remaining competitive, as many investors across all wealth segments will expect their financial provider to offer a one-stop-shop for advisory, investment and custodian services for both fiat and digital assets. Wealth managers must familiarise themselves with the technology and services currently available on the market to seamlessly incorporate digital assets into their portfolios.”

The UK is starting to take blockchain and crypto seriously.

Launched by fintech blackfridge, poundtoken is the first British-regulated stablecoin backed 1:1 by pound sterling (GBP).

poundtoken (GBPT) also allows direct GBP access to digital asset markets and facilitates frictionless real-time settlements.

Free Whitepaper
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Disruptive start-ups to watch out for

2021 was a record-breaking year, with more businesses breaking into the billion-dollar club. Many start-ups have achieved or retained the unicorn status by the end of the year to reflect nearly a fivefold growth from that in 2020. This boom can be linked to a financing frenzy spurred by the quick adoption of technology and innovative solutions by start-ups gaining traction in response to the pandemic. However, the start-up ecosystem is now facing turbulent times for fundraising as investors seek long-term business strategies, valuations, and a route to profitability amid uncertain market circumstances. Nevertheless, 2022 has the potential to carry forward the momentum with multiple entities having a fair chance of being in the right place when aided by the right technologies. GlobalData leverages the power of alternative data to examine the health of start-ups across multiple dimensions including the quality of their innovations, market presence, and the funding they can attract. This helps our clients to analyze the disruptive potential of start-ups for early alliances, investments, and acquisition prospects to develop future-proof strategic roadmaps for a competitive advantage. Read our report and gather insights on the following topics:
  • Recent Unicorn trends
  • Unicorns in 2022
  • Future Unicorns
  • Start-ups to watch out for
Start-up ecosystem outlook by top geographies
by GlobalData
Enter your details here to receive your free Whitepaper.

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