Every Asset On the Planet -- Digitized

“The technology will exist to allow for every asset on the planet to be digitized and available to be bought and sold in an instantaneous way.”

That’s how Nasdaq Chief Executive Officer Adena Friedman described the next three decades of innovation. On the 30th anniversary of Bloomberg Markets Magazine, we asked some of the top executives in finance to predict some of the biggest changes ahead.

A very hot topic: Blockchain and related technology.“We are moving towards a boundless virtual economy in which markets do not open or close, digital asset on- and off-ramps are limitless and metaverse activities are widespread,” Citigroup CEO Jane Fraser said. “One thing is certain, 2050 will be virtual and it will be boundless.” She also said:

“Digital assets will be widely embraced and securitized and we will see asset avatars that exist in more than one form between traditional assets, digital native assets, and tokenized versions of traditional assets. In this world, market participants will be able to respond to after-hours announcements and overseas events at any time of day and across time zones. The 24/7 nature of these transactions will reduce operational risk, streamline payments across platforms globally, and enhance the consumer and client experience.”?

Two Sigma co-founder David Siegel likened crypto to the early stages of the internet in 1990. But he also said he’s most excited about the potential for technology that leads to decarbonization, given climate change is becoming the dominant problem of our time.

Goldman Sachs CEO David Solomon told me innovative climate technology will be a huge driver of capital investment -- even as the government will need to play a bigger role to encourage such moves.

Nir Bar Dea, who was named co-CEO of Bridgewater this year, says the most innovative technology will be addressing the issues created in a divided world:

“We’re living in an increasingly polarized world characterized by conflict between and within nations, with trust in the institutions and systems that fostered collaboration for decades sharply degrading.

The most important innovations of the next few decades will be the evolution of a suite of technologies to successfully support an open-collaboration approach. By open collaboration, I mean the dynamic where the best thinking is made transparent to people all over the world, so that others can digest it, learn from it, improve on it, and -- ultimately, if truth and merit win out -- trust it.”

Here is the full story.

More on Wall Street

• Advent International’s co-chairmen joined me in an exclusive television interview after raising one of the largest private equity funds in history. “As the market is becoming a lot tougher, and cash is more important, that really helps private equity firms,” David Mussafer says. “We’re excited about the potential prospects of some of the dislocations.”
• SEC Chair Gary Gensler is trying to change the payment-for-order flow system. Here’s a video on the options on the table.
• US inflation quickened to a 40-year high, Treasury yields reached the highest levels since 2008, and the stock-market tumble is speeding up, putting equities on track for a ninth decline in 10 weeks.
• Wall Street is moving to Florida, and it’s putting huge pressure on the school systems to meet new demand.
• A top banker at Credit Suisse tells Bloomberg he’s winning back clients. A day later, the bank issues a loss warning. It may cut more jobs. It also faced a deal rumor, then a rejection of that rumor. This is all in a single week.
• Coatue and JPMorgan are targeting billions of dollars in fundraising to help startups stave off troubles.
• More Tiger Cubs are losing money.
• And don’t miss this must-read story by my colleagues Hema Parmar and Miles Weiss on the troubles in private investing -- the hottest trend in the hedge fund industry in recent years. Dan Sundheim’s D1 Capital had borrowed billions toward a strategy that’s under pressure this year.

More to come. I’m filling in on Bloomberg Television from 2 to 5 p.m. ET on Tuesday, we’ll have former Apollo partner Sachin Khajuria during the show to talk about his new book: “Two and Twenty, How the Masters of Private Equity Always Win.” In the meantime, tips and opinions are very welcome at [email protected].