Yesterday, the DIFC Innovation Hub in Dubai announced a new initiative in collaboration with Euroclear and Swiss private bank Julius Baer. The aim of the project is to explore the planning of digital assets after death. Many digital assets are bearer instruments, which means that after the individual’s death, accessing the keys to unlock their tokenized assets can be problematic.
The transfer of keys and related issues is just one of many topics that the group plans to investigate. For example, many people may not include their digital assets in their wills. Over the next decade, the transfer of assets worth $1 trillion to the next generation is expected throughout the Middle East. It seems that less than a quarter of high-net-worth individuals have a fully developed succession plan.
“We have the potential to change the wealth management narrative by creating solutions that span multiple generations, validating and unlocking the benefits of smart contracts,” said Philippe Laurensy, Group Strategy, Product Management, and Innovation Director at Euroclear.
“The region is witnessing a trend of generational wealth investing in various classes of digital assets for diversification and future portfolio protection,” said Mohammad Alblooshi, CEO of the DIFC Innovation Hub. “This newly launched innovative project will help transform one of the largest untapped markets in the region and open doors to a more inclusive and technology-driven future for family businesses and wealth management industry.”
Julius Baer, as a large asset manager with a presence in Dubai for over 20 years, brings experience in inheritance planning.
As part of the project, a whitepaper will be prepared to assist other jurisdictions in addressing these issues. In the meantime, certain solutions are already available in the market. For example, in Singapore, DBS Bank has created DBS Trustee, a solution to help manage specific types of digital assets.
Both Julius Baer and Euroclear are no strangers to blockchain technology and digital assets. The Swiss private bank was one of the first to provide customers with access to digital assets back in 2019. Meanwhile, Euroclear recently launched its digital financial market infrastructure (D-FMI).
FAQ:
1. What is the goal of the new DIFC Innovation Hub initiative?
The goal of the new DIFC Innovation Hub initiative is to explore the planning of digital assets after death.
2. What topics will be investigated as part of this initiative?
One of the topics to be investigated is the transfer of keys to unlock tokenized assets after death. The initiative also aims to identify other issues related to digital assets, such as the lack of inclusion in wills.
3. What is the estimated value of assets to be transferred to the next generation in the Middle East region?
It is estimated that assets worth $1 trillion will be transferred to the next generation over the next decade in the Middle East region.
4. What benefits will this innovative project bring to family businesses and the wealth management industry?
The project aims to open doors to a more inclusive and technology-driven future for family businesses and the wealth management industry.
Definitions:
– DIFC (Dubai International Financial Centre) – International Financial Centre in Dubai, a financial area operating under legal and regulatory principles similar to those in London and New York.
– Euroclear – International central securities depository providing settlement and safekeeping services.
– Julius Baer – Swiss private bank specializing in wealth management.
– Will – A document in which an individual specifies what is to happen to their assets after death.
Links to the main domains:
– [difc.ae](https://www.difc.ae)
– [juliusbaer.com](https://www.juliusbaer.com)
– [euroclear.com](https://www.euroclear.com)
The source of the article is from the blog toumai.es