Opportunities of ICOs for Financial Services Incumbents

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Autonomous Next has analysed the opportunities for Financial Services incumbents to incorporate ICOs as an asset class into their business models. We measured opportunities in two dimensions: (1) proximity to end-client financial assets and (2) time horizon of financial activity. Our findings show that the opportunities for businesses with relatively short term financial activities, such as payments, are limited. However, companies operating in longer time horizons, such as investing, experience more methods of creating value through ICOs. For example, an incumbent operating in payments has the opportunity to aggregate payment data for financial management, but cannot leverage ICOs as an asset class closer to the end-client. However, with investing, an incumbent can create value close to the end client by adding tokens as part of asset allocations in client advisory , while using AI to extract sentiment from crypto-discussions on the other end.