FERI expects demand for alternative investments such as private markets (private equity, infrastructure, real estate) and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments exceeding 18 billion euros, making it one of the largest providers in Germany.
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In institutional asset management, FERI offers a broad range of asset management services for institutional investors. Our investment specialists have many years of experience in all asset classes and follow a multi-asset approach ranging from the development and implementation of individual investment strategies to quantitative risk management and control.
FERI expects demand for alternative investments such as private markets (private equity, infrastructure, real estate) and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments exceeding 18 billion euros, making it one of the largest providers in Germany.
For more than 20 years, we have been offering our clients individually tailored risk management solutions. Market risks are actively managed according to risk and return parameters jointly defined in advance.
FERI is a byword for comprehensive, individual, transparent and sustainable advice and support for private clients. With over 30 years of experience, we offer private investors a wide range of asset management services.
For us, your requirements and needs are the basis for planning and optimising your asset structure. We always keep an eye on all legal and tax aspects and try to bring about improvements for you. As we work strategically on a long-term basis, we place a strong focus on comprehensive future and succession planning. Foundation consulting is also part of our strategic asset structuring.
The FERI family office is the strategy advisor for your assets. We offer services ranging from strategic asset planning, implementation consulting and results monitoring and controls, through risk management and asset protection strategies to sustainability consulting.
With the help of an asset liability management study, FERI can show you whether a financing system in its current form is sustainable and whether sufficient risk carriers are available or whether a modification of the system is advisable.
During the transition to a sustainable future, FERI guides and supports you in the implementation of a sustainability concept and in the implementation and further development of existing solutions.
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FERI offers its clients the entire process of investment consulting and has continuously developed it since the 1990s. Thanks to our extensive experience, self-developed research and analysing tools and the access to around 250 employees in all areas of the investment process, we create significant added value for our clients through our range of consulting services.
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+49 (0) 6172 916-3600
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D-61348 Bad Homburg
Rathausplatz 8-10

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Tokenization radically changes structure of investment markets

Bad Homburg, 9/8/2021
by FERI Cognitive Finance Institute
  • Crypto assets bring disruptive changes to capital markets and financial industry
  • Token-based investment vehicles and "smart assets" create new markets for investors
  • Future vision of a decentralized financial system (DeFi) requires professional legislation
  • FERI Cognitive Finance Institute examines opportunities and risks of the "token economy"

With the introduction of so-called "crypto-assets", the digitalization of the financial world is reaching the next level. In particular, "tokenisation", i.e. the possibility of converting real assets into virtual units and trading them via the blockchain, will radically change capital markets and the financial industry. These are central statements of the new study by the FERI Cognitive Finance Institute on "Blockchain and Tokenization - Disruption of the Financial System by Crypto-Assets and Decentralized Finance (DeFi)". "In a decentralized financial system based on blockchains, traditional financial intermediaries will have to massively rethink their business models," says Dr. Heinz-Werner Rapp, founder and director of the FERI Cognitive Finance Institute.

"Digital democratization" challenges the financial establishment

The tokenization of assets makes it possible to acquire fractions of any asset in digital form, he said. This would not only expand the investment universe for established investors and create opportunities, for example in new markets such as art, music or intellectual property rights. It would also give new groups of investors access to asset classes that were previously beyond their reach. The digitization of assets in a blockchain infrastructure also offers significant time and efficiency gains in asset trading. Options and derivatives markets could also be completely redesigned, for example through the use of self-executing contract elements ("smart contracts"). Such "digital contracts" would enable the development of digital payment flows and new types of assets ("smart assets"). "Trading and investing in crypto assets is still in its infancy, but the future vision of a 'token economy' within the framework of a 'decentralised financial system' is already challenging the financial establishment," Dr Heinz-Werner Rapp is convinced.

Legislators are needed

However, there is still a long way to go before blockchain technology, cryptocurrencies and global investment markets merge to form a new digital financial system. However, the first steps towards a legal framework have already been taken - such as in Germany with the Electronic Securities Act. "We need a professional legal basis for digital assets to ensure fair competition and social acceptance," says Rapp. After all, as with every technological structural break, the opportunities and risks here are also close together. Potential efficiency gains from the elimination of fees, deadlines and other transaction barriers are offset by the fear that a parallel shadow financial system could emerge to which supervisors have no direct access. Both arguments are valid, which guarantees lively discussions and disruptive developments in the future.

The study "Blockchain and Tokenization - Disruption of the Financial System by Crypto-Assets and Decentralized Finance (DeFi)" is available in German as download.


About FERI Cognitive Finance Institute

FERI Cognitive Finance Institute is the strategic research centre and creative think tank of the FERI Group, with a clear focus on innovative analysis and method development for long-term aspects of economic and capital market research. The institute uses the latest findings from areas such as behavioural economics, complexity theory and cognitive science.

The FERI Cognitive Finance Institute is backed by an experienced team with an interdisciplinary academic background, many years of research practice and specific expertise. In addition, it has access to a powerful network of external experts.

The Institute was founded in 2016. Rapp studied economics at the University of Mannheim and received his doctorate on psychologically influenced investor behaviour ("Behavioral Finance"). He has worked on alternative capital market models for many years and has recently developed key principles of the new "Cognitive Finance" theory.

FERI has operated as an independent investment house since 1987, with a focus on investment research, investment management and investment consulting. The name FERI stands for "Financial & Economic Research International".



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Marcel Renné

Chairman of the Board & CEO

Rathausplatz 8-10

D-61348 Bad Homburg