Max J. Heinzle holds a MSc in Global Banking and Finance. As an investment analyst at a leading VC firm and later in the role as Head of Capital Markets of a CF firm he gained extensive capital markets experience. In 2015 he co-founded MEZZANY (Onecrowd Securities), pioneering the crowdinvesting space in Germany leading to +EUR 100m in transaction volume and +90.000 registered users. Max founded 21.finance AG in March 2017. 21finance offers digital and regulated software solutions for optimizing the value chain of financial institutions. With “Marketplace as a Service” (MaaS), 21finance enables banks and financial intermediaries to enter digital direct sales quickly and profitably and supports them in increasing reach and making products and issuers accessible for investors across Europe. The platform area2invest powered by 21finance is a pioneer in the world of digital investment and issuance. area2invest is Europe’s first marketplace for securities and token issuances, linking natural and legal persons, non-professional and professional investors with issuers from different asset and product classes. We asked financing pioneer Max some interesting questions about tokenization and the future and got profound insights.
For whom will the blockchain and the tokenisation of assets play an increasing role?
In my opinion, the trend of tokenisation is comparable to the rise of the Internet, it will have a tremendous impact. The tokenisation of assets will bring potential for everyone in the ecosystem, new business models will emerge and the way of investing will fundamentally change for issuers and investors. The age of the Internet of Value has dawned, a fundamental and disruptive technology that – analogous to the internet as we know it – will transform the financial industry.
How do you think the financial sector will develop over the next few years?
Digital Transformation is one of the megatrends of our time. The need for banks to digitalize their business is becoming more and more urgent. This is due to changing customer needs, the associated rise of the neo-banks and the Corona crisis, which has intensified this pressure. So I believe that in the future, the majority of banks will rely on digital solutions and drive their digitalization projects. Many banks are now aware that there is a need for action, this can be seen quite clearly in the market, for example Commerzbank is currently cooperating with numerous startups and even initiated its own startup hub, the “main incubator”. Financial institutions have invested more than 27 billion US dollars in fintech and digital innovations since 2015, according to KPMG. And in my opinion, this is only the beginning.
Another undeniable change has been triggered by the blockchain. I think that Security Token Offerings will play an increasingly important role in the financial sector in the coming years. We recently compared 5 different studies on the market potential of Security Token Offerings. The result was an estimated global potential of more than USD 3,000 billion by 2025.
In parallel, for some time we have been able to track an increasing number of inquiries on the topic of Security Token Offerings. We are pleasantly surprised at how specific many of these inquiries have become. This also indicates that the topic of asset tokenization is becoming more and more significant. So I think that the financial sector will move more and more towards the topic from different points of view, especially if the “blockchain-friendly” regulatory tendencies that are emerging more and more, e.g. in Liechtenstein, Germany, Switzerland and soon the EU as well, support the market and increase the trust in the technology.
For those who want to learn more about this, we have recently started with our white paper series on the anatomy and context of Security Token Offerings.
Major institutions have already uncovered their securities tokenization experiments, with recent examples include European Investment Bank, Thailand’s Central Bank, and the Union Bank of Philippines in collaboration with Standard Chartered Ventures.
Ultimately, security tokenization could fundamentally change the stock and bond issuance as we know it. I think that this innovation will change most banking core processes.
How do you gain confidence for the future?
I am very optimistic about the future. New technologies such as the blockchain will make our lives way easier in many areas, not only in the financial sector but also bring innovation in the healthcare sector, for example. I’m very excited about all the great projects that are yet to come and I’m looking forward to supporting companies with their innovations. Also, our vision to give banks and financial intermediaries an additional digital sales channel and to connect issuers and investors worldwide gives me a lot of confidence.
What motivates you to be a speaker at the BLOCKCHANCE conference?
Our goal is to strongly promote asset tokenization in Europe and to close the gap between the benefits of the technology in theory and practical implementation by speaking and writing about it. Blockchance is the best platform to do that, as it unites all industry players. I am looking forward to stimulating discussions and excellent networking.
Max Heinzle is a highly experienced and successful person, especially in the modern financing and corporate space. Meet him at the upcoming BLOCKCHANCE Europe 2021 conference, where he will hold a keynote speech on tokenisation within the platform economy! Get your ticket here and join the BLOCKCHANCE community in a deep dive into the universe of future technologies.