62 Smart Contracts Could Collapse The Cost Of Financial Services The value of financial assets globally ballooned from $140 trillion in 2000 to $510 trillion in 2020, thanks to a combination of global economic growth, increased financialization, and expanding equity multiples. The operating cost of the global financial system increased in tandem with the value of financial assets. At $20 trillion in total annual revenue, the aggregate financial services industry’s take rate has been 3.3% relative to the value of all financial assets. Smart contracts could lower this drag on the economy materially. S Value Of Global Global Financial Economic Impact of Financial Regulatory Compliance T Financial Assets Services Revenue C A R T N $510T $17T Cost To Current Cost Lowering O Activity C System Solution T R A Know Your SM 3.6x 3.3% agg. 3.3x Customer $1,500-$3,000+ per individual Unified digital identity take rate Verification verification verifiable across institutions Trillions Nasdaq Listing Fee $270k per listing + $52-$180k Direct DEX listing with global $140T $5T annually distribution Global Anti-Money $274 billion cost to the global Laundering financial system annually Auditable provenance of Compliance funds on global ledger 2000 2020 2000 2020 Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, which are available upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.