Guest Lecture Finplanet

Question 1

New decentralized financial markets have emerged on the west coast of the USA

Answer 1

▪ DA Asset management platforms emerging (e.g. tokensets)
▪ Banks and asset managers with tokenization initiatives
▪ Regulatory environment slowly turning towards DLT

Industry adoption continues to progress

Question 2

Value propositions of Digital Assets (Technical View)

Answer 2

1. Broadening Capital Sources
   Security Token Offerings (STO) as a new means to raise Capital
   Supports EU-efforts to establish bank union
2. Broadening Investment Universe
   Non fungible Tokens offer new opportunities to trade and invest real assets/formerly illiquid assets
   Investment in newly listed, small & medium sized companies

Question 3

Value propositions of digital assets:

3. Transaction Costs, Speed & Risk

• Smart contracts can automate and significantly speed up certain MBO- functions (e.g., capital measures)
• Also, reduction of intermediaries in some cases possible
• Reduction of counterparty risks through atomic trades

Answer 3

4. Asset fractionation
   * Tokenization allows the digital mapping & denomination of Assets
   * Nominal values can be freely modified to better fit investor needs
   * Revenue streams of assets can automatically be distributed amongst token holders
5. Operational Cost
   MBO automation reduces both material and personnel costs
   Simplification of IT architecture possible in steady state

Question 4

Value propositions (BUSINESS CASE VIEW)

Answer 4

Revenue - Costs = Profit

Revenue: 150 - 250 bps margin on crypto currency trading; Defending / expanding market share ;New revenue streams
from crypto registry
mgmt., crypto custody etc.

Costs: 7-15 bps efficiency gain in MBO; Automation and simplification of processes; But: Change costs + double run costs (old & new world)

Question 5

How do licensed service providers offer crypto services in Germany?

Answer 5

slide 20

Question 6

Other service providers are preparing to enter the German market

Answer 6

Service providers who have announced their intention to offer trading in the future: commerzbank, DZBank, upvest

Service providers that have officially submitted a license application for the crypto custody business: deka, deutsche bank

Service providers who have announced their intention to apply for permission to participate in the DLT Pilot Regime in Germany: finexity, 21x

Question 7

Overview of the German crypto securities landscape

Various value propositions in joint study with Cashlink and Porsche Consulting affirmed

Answer 7

Slide 22

1. Impact of security value chain
   Analysis of the most important sources of DLT efficiency potential along the value chain
2. DLT cost impact
   Detailing DLT cost impact at different maturity levels of the DLT infrastructure