Let’s begin this review with a summary of Wealth99, and the people it’s for. Wealth99 is an alternative asset investment company that specializes in tokenized precious metals and cryptocurrencies. Its clients are everyday people who are looking to diversify their portfolios with investments beyond the usual shares and bonds.
What are alternative assets?
Alternative assets are essentially any investment other than traditional assets like shares and bonds. This includes assets such as crypto, tokenized assets, and digital assets. Alternative assets are attracting a lot of interest right now, because of the poor returns shares and cash deposits are returning to investors. Inflation and the uncertainty that has affected financial markets since the beginning of the pandemic and more recently the war in Ukraine have all affected traditional investment options.
Alternative assets offer investors an opportunity to diversify their holdings with ‘non-correlated’ assets – in other words, assets that are not affected by the same conditions that influence prices and returns in shares and bonds.
What makes Wealth99 different?
Wealth99 is one of the first companies in Australia and the UK to specialize in selling and storing alternative assets on behalf of small-scale investors (in other words, everyday people – or the 99%.) Until now alternative assets were not readily available to smaller-scale investors. Due to barriers such as high costs-to-entry and government regulations, they were largely restricted to institutions, investment funds, and the very wealthy.
What makes Wealth99 different is that it uses a new blockchain technology called tokenization to make alternative assets accessible to everyday people. Tokenization is the creation of digital versions of real-world assets, so they can be more easily traded and allow for ‘fractional ownership.’ Fractional ownership means investors can choose to purchase just a tiny fraction of an asset; meaning they can invest what they can afford, minus restrictively high financial barriers to entry. This opens up alternative assets to people who might only have a couple of thousand to invest rather than a couple of million. Wealth99 calls that democratizing wealth.
The leaders of Wealth99 believe that tokenization and alternative assets are the game changer that the wealth industry has been waiting for, because they eliminate barriers to entry, and introduce wealth-building possibilities to millions more people.
Wealth99 is a registered financial services company, based in Sydney Australia. It also has a large team operating in the UK. It also has an EU crypto license and is compliant with all necessary KYC and AML requirements. It currently has around 22,000 accounts.
What does Wealth99 offer?
Wealth99 are pioneer in the tokenization of gold, silver, and platinum, and one of its flagship products is its Wealth99 Precious Metals Tokens. These allow investors to purchase precious metals without the logistical barriers, and from as little as £/$500.
Wealth99 also offers the following cryptocurrencies: Bitcoin, Ethereum, Litecoin, Polkadot, Cardano, Solana, Polygon, Chainlink, Avalanche, Stellar, USDT, USDC, Bitcoin Cash, Dacxi Coin
It is primarily a DIY investment platform, so Wealth99 doesn’t offer any investment advisory services. They do however have a team of specialists on hand to offer guidance on setting up accounts and navigating the platform.
Security is a very big focus for Wealth99 – as it should be because it deals in digital assets. Login to the Wealth99 exchange requires 2FA. 98% of the digital assets held by Wealth99 are stored in cold wallets with multiple keys, air-gapped from the internet, and fully insured by the global institutional custody provider Bitgo.
The cyber geeks among you will be pleased to know that Wealth99’s website traffic runs solely on encrypted SSL, all its wallets and private keys are stored using AES-256 encryption, and SQL injections are used to verify requests to help prevent CSRF attacks.
Wealth99 Precious Metals Tokens are fully backed by the equivalent value in the physical metal and can be redeemed for the actual gold, silver, or platinum (over a certain minimum quantity). The metal owned by Wealth99 clients is stored and insured by a third-party bullion house.
The future potential of alternative and tokenized assets
Let’s conclude this review of Wealth99 with a look at the future of the emerging market for alternative assets, and more specifically tokenized alternative assets.
The tokenization of financial products and services, across the board, is just beginning. By 2030 IBM Hyperledger estimates that there will be around $25 trillion in assets whose ownership is represented by tokens recorded on blockchains. Beyond that is anyone’s guess, but it seems clear that tokenization and blockchain have a big future, especially in the financial realm where the immutability of data recorded on blockchains is a very attractive capability.
Wealth99’s future lies in offering more tokenized assets for sale.
Wealth99 has a wealth of experience in the asset tokenizing process, having created its tokens for precious metals. Once government regulation has caught up with the technology, we’d expect to see many other tokenized alternative assets offered on the Wealth99 exchange. The company itself has indicated that carbon credits and commercial property are likely to be the next cabs off the rank.
If you want to review Wealth99 for yourself a good place to start is their website – wealth99.com