--- title: 2022 Digital Asset Securities Predictions description: I am Jerald David, President of Arca Labs—Arca’s innovation division. I am responsible for the development of financial infrastructure, networks, and products for the digital age, co-innovating with like-minded companies. I have 5 predictions for digital asset innovation in 2022: image: https://www.ar.ca/hubfs/2022-Digital-Asset-Securities-Predictions-1.png --- [![email-sig-logowhite](https://www.ar.ca/hs-fs/hubfs/email-sig-logowhite.png?width=102&height=96&name=email-sig-logowhite.png "email-sig-logowhite")](https://www.ar.ca/) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ** ** ** [![Arca](https://www.ar.ca/hs-fs/hubfs/arca_square_576x576.png?width=60&height=30&name=arca_square_576x576.png "Arca")](https://www.ar.ca/) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ** ** ** Search **Menu** ** ** [![Data Room](https://no-cache.hubspot.com/cta/default/4536350/72e2934a-0f70-4634-897e-b99fd4807a9b.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/72e2934a-0f70-4634-897e-b99fd4807a9b) [![Get in Touch](https://no-cache.hubspot.com/cta/default/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3.png)](https://cta-redirect.hubspot.com/cta/redirect/4536350/28ac2c2f-186c-436f-9682-1169cf946ad3) ![](https://www.ar.ca/hubfs/2022-Digital-Asset-Securities-Predictions-1.png) [Arca Labs](https://www.ar.ca/blog/tag/arca-labs) | # 2022 Digital Asset Securities Predictions [![Jerald David](https://www.ar.ca/hubfs/Jerald%20David-Headshot.png)](https://www.ar.ca/blog/author/jerald-david) Written by [Jerald David](https://www.ar.ca/blog/author/jerald-david) Dec 28, 2021 I am Jerald David, President of Arca Labs—Arca’s innovation division. I am responsible for the development of financial infrastructure, networks, and products for the digital age, co-innovating with like-minded companies. I have 5 predictions for digital asset innovation in 2022: 1. **ATSs will drive digital asset securities adoption.** Digital asset securities Alternative Trading Systems (ATSs) are in their infancy, and although there is currently only a handful, there are many more undergoing the registration process. The demand for liquidity will increase the need for ATSs to support the secondary trading of these securities. New listings, combined with access to formerly untapped assets will help increase the digital asset security market cap by 3x in 2022. 2. **Traditional financial firms will start tokenizing.** Tokenization is the evolution of all existing assets and product structures. Blue chip companies and publicly traded institutions will continue to tokenize assets in order to reduce operating costs and gain access to assets with traditionally high barriers to entry. The tokenization of real estate will be first, followed by equities, as investors seek the benefits that blockchain can deliver speed, certainty, and immutability. 3. **Digital asset securities will be utilized for corporate infrastructure. **We have seen a movement by financial incumbents toward the utilization of blockchain technology to replace legacy infrastructure. The first experiments were distributed ledger-based, followed by transactional proof of concepts. Next, we will see the evolution of digital asset securities for settlement, liquidity management, collateral management, and other U.S. dollar proxy workflows.  4. **Digital asset securities will have a domino effect. **It’s no surprise that publicly traded and regulated financial institutions are reluctant to participate in the digital asset ecosystem because of the perceived uncertainty. However, while they wait, more nimble private companies are gaining competitive ground. I predict the introduction of a regulatory framework, followed by the implementation of corporate innovation projects, and a flood of capital that will lead to the adoption of digital asset securities by many highly regarded companies.  5. **Early adopters and incumbents will converge. **Over the past decade, innovation in the digital asset ecosystem has been largely driven by start-up companies and first movers. These pioneers differ vastly from their larger, older, and bigger incumbents who view blockchain as unfamiliar territory. The unlikely duo will collaborate to build products and solutions that are made possible by the competencies of each partner.   For more 2022 digital asset industry predictions from Arca leaders, visit [Arca Outlook 2022](https://www.ar.ca/outlook/2022)   . "At Arca Labs we're breaking through the current limitations, we're developing cutting-edge solutions, and really we're accelerating the evolution of finance." Watch Our Founders Video       ### Subscribe For the Latest Blockchain News & Analysis     Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional. Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services. 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