Traditional wealth preservation methods and income generation are under threat in today's rapidly evolving financial world. The 2008 financial crisis and the recent COVID-19 pandemic exposed significant vulnerabilities in the system. Governments printed trillions of dollars to prevent economic collapse, providing short-term relief but devaluing money and disrupting financial systems. At Asaari, we believe our current monetary system is transforming. It's time to rethink how we manage our wealth.

The Rise of Digital Assets

Fixed-income products are essential for retirees, conservative investors, risk-averse individuals, and institutions seeking stable and predictable returns for long-term financial commitments. However, the current economic climate has increased the inflation, liquidity, credit, and default risks associated with these products. By early 2024, 10-year Treasury notes yield around 3.94%, and short-term 3-month Treasury bills offer about 5.45%. With an inverted yield curve, traditional fixed-income products offer limited yield opportunities and face stagnant growth due to high inflation and unpredictable interest rate changes.

Real estate is a compelling alternative investment, providing stable rental income and effective hedging against inflation. However, it requires substantial capital and active management while facing liquidity limitations. The sector is also vulnerable to cyclical pressures, including high interest rates, rising construction costs, economic uncertainty, and regulatory hurdles.

Smart investors are now turning to digital assets for better yields and diversification. As traditional cash loses value, these investors are moving away from traditional assets and seeking "hard assets" like real estate, gold, and digital assets such as Bitcoin. Despite its volatility, Bitcoin is viewed as a hard asset due to its limited supply and independence from government control.

As of 2024, over 100,000 Bitcoin wallet addresses hold assets exceeding $1 million, and the number of digital asset millionaires is expected to grow exponentially in the coming years. Companies and institutions have started buying Bitcoin on their balance sheets. This trend has attracted a new wave of lenders seeking predictable income streams and access to a highly liquid asset class amid an unstable monetary environment. 

Digital Asset-Backed Lending

Due to unethical practices, the digital asset-backed lending industry has encountered challenges in recent years. However, digital asset-backed lending plays a crucial role by enabling borrowers to leverage their cryptocurrency holdings without selling them. These loans are the primary means of accessing liquidity within this asset class and offer several significant advantages. They facilitate tax planning on capital gains, allow borrowers to retain potential asset appreciation, and provide accessible options without needing credit checks. Additionally, they offer rapid and cost-effective transactions, making them appealing to a diverse range of borrowers worldwide. Despite these benefits, navigating digital asset financial products remains complex due to varying technological and regulatory requirements across different jurisdictions.

The financial world is at a crossroads. Traditional systems are revealing their weaknesses, while digital assets like Bitcoin and Ethereum chart a new course. Tokenized real-world assets (RWA) are poised to become a major asset class, reshaping investment strategies. RWAs include tangible assets like real estate, infrastructure, commodities, and intellectual property, offering a stable and dependable store of value. Their evolution offers diversified portfolios and democratizes access to high-value investments.

Introducing Asaari

We are at the forefront of transforming the financial landscape with innovative solutions tailored to the modern era. Our mission is to redefine financial possibilities, offering products that embed security, transparency, and efficiency.

We are creating a marketplace for structured financial products backed by digital assets, starting with crypto-backed loans. Unlike traditional lenders, Asaari reduces high loan interest rates by mitigating risks and increasing capital supply through multiple lenders. We aim to lower capital costs, enhance market transparency, and improve security, attracting more participants and promoting responsible wealth building.

Our platform connects borrowers with accredited lenders, meeting the demand for secure, innovative financial solutions in the digital age. We cater to sophisticated investors, enabling them to diversify portfolios with digital asset-adjacent yield products. These products offer predictable fixed-income returns and high liquidity, making them an attractive asset class.

As borrowing rates for digital asset loans climb to 15%, risk premiums are being reevaluated, and potential inversion of financial norms is underway. Asaari is set to lead this evolving landscape by offering solutions tailored to the needs of modern digital asset holders.

Let's work together

We invite lenders and borrowers to join our waitlist and be part of a future where financial transactions are more reliable, accessible, and aligned with client needs. Asaari is the choice for those seeking innovation in a world of financial uncertainty, restoring trust and stability in economic systems. Whether you are a borrower seeking innovative lending products or an investor looking for predictable returns in a volatile market, Asaari offers the tools and platform to meet your needs. Join us at Asaari and be part of the future of finance.

‍

#DigitalAssets #StructuredProducts #Lending #DigitalFinance