In recent years, the financial landscape across the globe has undergone a dramatic transformation, one which has left investors exposed to a series of systemic risks. Governments have adopted Bail-In legislation since 2008 and subsequently banks have adopted bail-in measures in a place that has previously taken the place of tax payer bail outs. Large depositors, unsecured creditors and bondholders have come under heightened scrutiny. This shift was designed to foster market discipline, yet it carries the risk of significant financial loss when bank failures occur.
Alongside these developments, nationals deposit guarantee schemes have been introduced in many countries to protect smaller depositors. Whilst these schemes offer essential coverage, ranging from SGD 100,000 in Singapore to HKD 800,000 in Hong Kong, they typically secure only standard albeit small deposit accounts. As a consequence investors, SMEs and others holding assets above the insured limits and a wider array of financial assets remain vulnerable to much broader risks that are inherent in the financial system.
In addition to the above concerns is the move towards the dematerialisation of securities. Assets increasingly held in book entry form, investors are often led to believe that they have direct ownership of the said securities. In reality, these assets are frequently used as collateral, exposing investors to potential losses in the increasingly likely event of a looming financial crisis. This practice, coupled with the international harmonisation of securities laws and safe harbour provisions for derivatives, has raised alarm bells about the realisable probability of a coordinated global scale seizure of collateral, as horrific theses described in great detail in David Rogers Webbâs thesis, âThe Great Takingâ.
To this end, Aerapass offers a comprehensive solution by reimagining asset management by introducing efficient methods to provide financial stability in a world that is susceptible to systemic risk. By storing value in physical precious metals and other tangible real world assets that are highly liquid and instantly tradeable provides a solid foundation amidst volatility of current banking risks. Investors can seamlessly exchange currencies for a diversified portfolio that includes physically held precious metals, physically backed securities and digital currencies. This multi faceted approach not only diversifies risk, it also creates a robust buffer against uncertainties of bank insolvency and collateral seizure.
Aerapass also leverages advanced technology to facilitate real-time trading and efficient management of assets. Its platform is designed to integrate with existing financial systems, making it an attractive option for SMEs, individual, institutional investors and large institutions. The systemâs multiple market regulatory compliance and institutional grade security measures further enhance its appeal, ensuring that assets are safe guarded even as the financial world deals with increasing instability.
In the current period where the risk of bank failure is highly probable, the stability provided by tangible asset storage can not be emphasised enough. Aerapass not only offers a practical solution to mitigate the risks associated with modern banking practices, it also represents a forward thinking approach to financial fluidity and asset security. As the global financial system continues to evolve, embracing such solutions, as early as possible, will be essential for safeguarding wealth and maintaining investor confidence.
For more information contact us:Â Aerapass www.aerapass.com info@aerapass.com