Tokenization is a reality in an increasing number of markets, enabling more agile trading, more profitable investments, and even more effective process management, which leads the token market to become more diversified.
At a speed that surprises even the most optimistic about the growth of tokenization, we have come from a time when NFT reigned with its (bi)million dollar trades and we have come to the current scenario, with token options for all business strategies.
Who would have imagined blockchain making the sale of a fractional ownership possible? Or the investment in tokenized gold?
Believe me: these are already the most common versions on the market!
On the other hand, it is natural that a disruptive and recent technology arouses some doubts.
Is converting products into tokens a legal activity in Brazil?
Is tokenizing assets something that is transient and will not sustain over time?
BLOCKBR, a web 3.0 native company, will talk about the moment of this market and how you can take advantage of great opportunities, offering or investing in tokens!
WHAT MAKES UP THE TOKEN MARKET
REAL ASSET TOKENS
It is the tokenization of physical assets directly between owners and investors/buyers. The best example is the tokenization of real estate, where fracking – the division of the value of the asset into hundreds and even thousands of tokens – is a determining factor.
Small investors can invest affordable amounts in the share of rental income or profit from a future sale of the property. Crops, livestock, production assets, and works of art are niches that use the super-structured tokens with great results.
FINANCIAL ASSET TOKENS
This is the structured token that attracts investors who want to invest in low-risk assets with great yield prospects, in addition to its predictability.
Also known as a receivables anticipation token, it is a great passive income option with higher than market rates, because the offeror avoids the negotiation of receivables with the banking system and thus can better remunerate the investor.
SECURITY TOKENS
Also known as security tokens or securities tokens, they represent tradable financial assets – stocks, debentures, warrants, bonds, and others. It is another category where the fractioning of assets is a differential, because it makes room for small investments.
UTILITY TOKENS
Utility tokens are not an acquisition or investment token per se. It is the tokenization of exclusive services for customers, through loyalty or rewards programs. The fan token is the best example, widely used by sports teams, artists and celebrities.
Learn more: types of innovative investments to invest in this year!
WHAT TO EXPECT FROM THE TOKEN MARKET
THE ARRIVAL OF THE DIGITAL REAL
The encrypted version of Brazil’s fiat currency, currently under development and with a pilot expected to be launched in the second half of 2023, will be an essential advance in the digitalization of business, bringing more credibility to tokenization.
The Brazilian digital currency will not have the characteristics of cryptocurrencies – volatility and a high degree of speculation; it will be a monetary token that will represent the real and can be used in all commercial activities.
GREATER DIVERSITY OF MARKETS AND OPERATIONS
As we saw earlier, there are tokens for a wide variety of business models, from the sale of goods to investment in fixed or variable income. The success of tokenization will attract more companies and investment groups, increasing the token’s presence in the economy.
It’s not just the companies’ cash flow that the token will impact: blockchain technology will allow the use of tokens to digitize production chains – and this is already happening on several fronts, such as Embrapa in the tokenization of sugarcane production.
TOKENIZATION REGULATION
A recurring question when talking about tokenization is: is tokenizing assets legal?
Certainly, yes!
Firstly, activities with tokens are so far covered by the Civil Code in cases of fraud. With this, besides recognizing the token, the Brazilian legislation protects the investor of this digital asset and gives more backing to reputable tokenizing companies.
In addition, a milestone in the history of the token in Brazil is the presidential sanction of the Cryptocurrency Law at the end of 2022, with a focus on preventing and combating financial crimes with digital currencies.
The legal framework further enhances the credibility of the tokens.
Transactions with bitcoin and other currencies, which are a speculative investment, will be legally protected, further enhancing the market security of tokens, which are supply vehicles and not investment products per se.
It is important to note that in tokens, risk, liquidity, volatility, and speculative grade are associated with the backed asset.
TOKENIZATION MARKET FACTS AND FIGURES
- According to the Gran View Research consultancy in California, tokenization will move almost $14 billion from 2023 to 2030. Moreover, projections indicate an annual growth of 24% in the volume of offerings worldwide;
- The highlight is in the components industry with the use of tokenization for data protection of production chains with the high standard of blockchain security and transparency;
- In Brazil, cryptoactive regulation and the adoption of the digital real are leading banks, previously resistant to technological disruption, to invest in tokens, as is the case of Itaú, which has a project to tokenize the bank’s traditional financial products;
- Companies will raise funds through tokens for entrepreneurial projects, and people with budgets of all sizes will invest in the development of markets such as agribusiness, one of the most important in the use of tokens in their activities.
These and other facts show the potential of tokenization to leverage business, whether capitalizing a project, offering investments, or negotiating products and services.
Excellent opportunities will arise from the simplicity of opening an account with an asset tokenizer like BLOCKBR to invest in a wide variety of offerings.
CREATE A BUSINESS TOKEN WITH BLOCKBR!
The tokenization of assets and rights is a reality as an efficient vehicle for the business environments of all companies and markets, and as an attractive alternative for more people of all profiles to buy tokens and grow as investors.
It is time to offer your assets, products, services, rights and projects with transparency and agility, in a secure marketplace for tokens , with 100% availability and providing above-average returns.
Come and talk to BLOCKBR. We have the best token offering strategy on the market!
BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.
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.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
