The tokenization of assets is becoming more present in the business models of different sectors of the economy in Brazil and in the world. The benefits are many, but there are still questions about how to tokenize an asset.
This question is natural, after all, the blockchain is still in its infancy: bitcoin was created 15 years ago as a revolutionary means of payment, it became a highly speculative investment and with its popularity also came distrust about security and legality.
With business tokens, the scenario is completely different, even though they are created with the same blockchain technology.
In addition, tokenization is accessible to companies and individuals and there are no technical limits to transforming the asset into tokens and making more profit in less time than in traditional forms of offering.
But how is an asset tokenized?
And what is the role of an asset tokenizer in this process?
BLOCKBR, a native web 3.0 company, will talk about the tokenization process and how it can be decisive for the profitability of your business!
ARE TOKEN AND CRYPTOCURRENCY THE SAME THING?
This is a very common question and the answer is no. Despite being digital assets created on the same blockchain technology, digital currencies and tokens have marked differences.
CRYPTOCURRENCIES
- They were created as a decentralized means of payment but have also become a high-risk investment (today, this role is more prominent);
- Appreciation is impacted by supply and demand conditions, market speculation and the currency’s exposure to confidence crises, such as the FTX case.
BUSINESS TOKENS
- Are the encrypted digital representations of assets, rights, products, services and projects and created as a digital form of offer and negotiation;
- The token does not have its own valuation, it reflects the valuation of the asset it represents and adds more agility, transparency and liquidity.
As we can see, there is an important conceptual difference; an asset in itself, with the risks in terms of investment – cryptocurrencies – and the technology used to do business – tokens.
Discover the benefits of tokenizing your assets!
WHICH ASSETS CAN BE TOKENIZED
From a technical point of view, every asset can be tokenized, but it is necessary to assess whether it is worth tokenizing.
The main aspect is the cost-benefit ratio of tokenization, as the good will not be offered through traditional supply channels and efforts will be concentrated on tokens.
Another factor to consider is the legal status of the asset. such as tokenized real estate, and some securities that must comply with the requirements of ownership and tax compliance provided for by law.
These are simple analyzes that the tokenization company will do at the beginning of the process.
WHAT ARE THE MAIN TYPES OF TOKENS EXISTING
REAL ASSET TOKENS
These are super-structured tokens for trading real estate, vehicles, equipment, works of art, crops and other tangible assets.
RECEIVABLES ANTICIPATION TOKENS
Also called structured tokens, it is a way for companies and individuals to capitalize by tokenizing credit rights.
SECURITY TOKENS
Security tokens are the tokenization of securities that are regulated by the CVM – debentures, shares and other securities.
UTILITY TOKENS
Utility tokens are used to tokenize exclusive services and loyalty and relationship programs between companies and their customers.
HOW ASSET TOKENIZATION WORKS
Tokenization works from two main elements:
- The blockchain, a large digital environment, composed of an incalculable amount of supercomputers that act to validate each transaction made with tokens, in addition to providing security and transparency for negotiations;
- The smart contract, the digital document inserted in the blockchain that contains all the rules defined for the offer – characteristics of the good, term for offer, value of the token, expected remuneration (term, percentage).
To make the tokens available to the market, a token sale platform is used, the smart contract does all the management electronically, without human interference.
It is a very simple process from a technological point of view and the most important task is to map the specifics of the asset to be tokenized – a job that must be done by a qualified asset tokenizer.
HOW TO TOKENIZE AN ASSET IN BRAZIL WITH BLOCKBR
The first step is to study the feasibility of tokenization, when the asset specifications are analyzed as shown earlier to make sure that tokenizing the asset is an interesting option and that the asset holder has its legal credentials.
In addition, the main conditions are also defined – quantity of tokens, value, condition for entry of the tokenist, term of the offer, remuneration to be paid and in what form and revenue potential.
After approval of feasibility, the process follows the following steps:
ISSUANCE OF TOKENS
In this step, tokens are created in the defined amount and the smart contract that will be used for:
- Control the approval of transactions and business;
- Deliver tokens to investors;
- Release the funds to the issuer of the offer;
- Schedule and pay investor fees;
- Settle tokenization.
DISTRIBUTION OF TOKENS
In the distribution of tokens, they are made available on a digital sales platform where customers can buy tokens for a wide range of goods and projects.
TOKENIZATION MANAGEMENT
This is the tokenization governance through the smart contract to ensure that all remunerations are paid as agreed, guaranteeing the credibility and security of the operation.
TOKENIZATION INFRASTRUCTURE IS ONE OF BLOCKBR’S DIFFERENTIALS
Delivering the best tokenization infrastructure is BLOCKBR’s commitment to the success of our customers when it comes to raising funds and boosting business profitability.
- Deliver the most efficient and agile technological solution for the profile of the asset to be tokenized and the target audience;
- Consultancy with market expertise to recommend the best tokenization strategy for the asset;
- Broad guidance on token compliance with specific legislations;
- Uncomplicated and agile token sale marketplace for investors.
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divider to increase the credibility of technology for those who want to invest in tokens.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
BLOCKBR Digital Assets is a fintech native web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the asset tokenization process.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Come tokenize your business and put it on a higher level in the market!
