Regulated tokenised securities at low cost - liquid, investment-backed and easy-to-trade - even at medium yields have a unique opportunity to wake up the slumbering giant and to serve this enormous pool of equity, and not only in Germany but across the whole of Europe.
As of Q2 2019, the Deutsche Bundesbank reports that the trend towards capital market-related investments, which has existed since 2014, continues, whereby,
German savers continue to prefer liquid forms of investment, such as overnight deposits and savings bonds, which they perceive as low-risk. Therefore, €2.5 trillion or 40% of all savings are held with little to no return.
Since July 2008, sight deposits by private households alone have more than tripled from €466 billion to €1.467 trillion. German savers are in a devaluation trap thanks to quantitative easing, lowest interest rates and now penalty payments. There are no adequate, tradable, liquid offers with attractive interest rates. The pressure on banks and their customer relationships is existential.
In Q1 2019 alone, total savings grew by €153 billion to €6.17 trillion, thus an average of €74,000 per citizen; With around €30,000 in low-income bank deposits and €28,000 in insurance policies, the average German saver achieves substantially lower earnings with a gap of 3% compared to savers in Norway, England and the Netherlands, or 2% compared to the EU average, and almost 5 % below the average US saver.
Hanse Digital Access has designed and built the engine for the securitisation of usufruct rights ('Genussrechte') and digitisation of the 'Genussschein' or 'Non-Voting Equity Securities'. It advises the Alternative Investment Fund Manager (AIFM) on the digitisation and provides the relevant software modules for a Special Purpose Vehicle (SPV) initiated by the AIFM under its issuance and arranger agreements with the respective Project Developer or Sponsor and its project company. The AIFM arranges for the SPV in turn to generate its project specific Genussschein with its underlying usufruct and prospectus.
It is assisted and advised by legal and tax counsel as well as auditors. Upon approval by regulators first in Estonia and then Germany the Genussschein in the run-up to its stock exchange listing is pre-placed in part through Banks, Financial Advisors and Intermediaries, then becomes listed and tradable starting in Germany.