“How Blockchain May Play An Increasing Role In Investing” by CBA Board Member Pat LaVecchia
In a recent article for Forbes, Pat LaVecchia, Founder and CEO of Oasis Pro and CT Blockchain Association Board Member, shares his cogent insights on the potentially significant role of blockchain in creating new investment opportunities, as the next generations seek innovative forms of portfolio diversification. Blockchain, Mr. LaVecchia reasons, may provide greater transparency, liquidity, and efficiency, as investors on the vanguard look for lucrative alternative investments.
Pat LaVecchia
“Some investment experts and advisors have been urging investors to recalibrate their return expectations for a traditional 60/40 stock-bond portfolio and have suggested diversifying into other potentially return-enhancing asset classes.“
“Practical challenges to investing in alternative assets exist though, such as cumbersome processes, high initial investment requirements, lack of liquidity and lack of transparency. These challenges often prevent widespread access to these assets. The experience can be improved upon, the challenges can be mitigated and investor participation can grow. And here is where blockchain and tokenizing these offerings can play a significant role.”
“Some potential benefits of tokenization include enhanced settlement times, increased transparency, increased liquidity, operational efficiencies and fractionalization, or the ability to create smaller denominations in an investment. Some examples of real-world assets that have been tokenized include bonds, real estate and commodities.”
