Securities Commission Aims to Boost Power of All-in-One Apps: Essential Info for Investors
In the rapidly evolving world of finance, a new trend is emerging - super-apps. These innovative platforms aim to revolutionise the financial landscape by offering users the ability to buy, sell, and hold both traditional securities and cryptocurrencies within the same account.
Super-apps are not just limited to trading; they also provide access to staking and crypto lending products. If the super-app market can establish itself, it could open decentralised finance (DeFi) applications to more investors.
Potential leaders in this future market are diverse. Asian platforms like Grab, known for uniting diverse services in one app, and major technology firms such as Google and Apple, who dominate AI and digital ecosystems, are positioning themselves as key players. European companies like SAP are also investing heavily to strengthen cloud sovereignty, potentially enabling integrated service platforms contributing to a Super Bowl environment.
Super-apps have already gained traction in parts of Asia, with China's WeChat serving as a popular example of a super-app that offers a variety of services beyond messaging. Coinbase's Base App is also moving towards super-app territory, offering trading, payments, social media interaction, and access to DeFi applications.
Robinhood, another popular brokerage, has already differentiated itself from competitors by launching a digital wallet and developing its own blockchain. It has also added a robo-advisor investment platform and plans to make banking services available later this year.
However, the path to success is not without challenges. Attempts to replicate the success of super-apps in North America and Europe have faced regulatory issues and cultural differences. The House passed the Clarity Act in July, which aims to clarify what constitutes a security, but it still needs Senate approval.
Regulatory bodies, such as the Securities and Exchange Commission (SEC), are also playing a significant role. Paul Atkins, the chairman of the SEC, has unveiled a new initiative called Project Crypto to modernise the SEC's rules and regulations for cryptocurrencies. Atkins believes that there is nothing in current securities laws to prevent SEC-registered trading platforms from listing non-securities.
While super-apps could provide customers with more access to digital assets and banking services, they could also face issues with data-protection laws and the need for strict rules regarding custody and fraud protection. Recent SEC guidance makes it easier for U.S. investors to earn staking rewards, but increased regulations might open the way for increased fraud and theft.
Established DeFi players like Aave (AAVE) and Uniswap (UNI) could potentially benefit from super-app growth. As the super-app market evolves, it's essential for investors to pay attention to what assets they own and how they are supported or issued.
In conclusion, the rise of super-apps promises to bring significant changes to the financial industry. As these platforms continue to develop and navigate regulatory challenges, they could usher in a new era of financial services, making digital assets more accessible to a broader audience.
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