The Brazilian financial market is a reference in innovations, enabling new fronts of action in the market and also among the population. Asset tokenization is one way to transform how investments are managed, used, and monetized. According to a survey by Visa, Brazil represents 20% of tokenization operations with company credentials worldwide.
The emergence of cryptocurrencies was an essential factor in the popularization of the term, as many companies and projects created their own tokens to raise capital and facilitate transactions on their platforms. In the context of blockchain technology, for example, a token is a digital representation of something of value in a blockchain application. One of the advantages is that it only takes approximately 30 seconds to issue a token for any purpose on the blockchain.
It is important to emphasize, however, that the tokenization of assets can be complex and involve legal, technical, and compliance issues, a practical example is the CVM (Real Estate Securities Commission), which legislates on movable assets and restricts the sale of tokens classified as “fixed income” in April 2023.
Debenture tokenization by B3
Following this pace, B3, the Brazilian stock exchange, launched a new platform for issuing, registering, and trading assets to keep up with market demand and bring innovation and security to its operations. The initiative was born with the first tokenization of a regulated asset, with debentures digitized and made available in a new B3 environment created in partnership with Hathor. In this way, with the asset kept in the fixed income depository, it was possible to follow and guarantee the solidity of the operation in accordance with the current regulatory framework and replicate it for the new technology.
In addition to a complete platform with cutting-edge technology and security, asset trading is facilitated agile and transparently, allowing all types of investors to expand the possibilities of diversifying their portfolios. Furthermore, the company already has plans to expand into similar projects, which should be offered to customers soon.
B3 Ecosystem
The B3 ecosystem also has its own cryptocurrency exchange, led by its arm B3 Digitas. The service works in the crypto-as-a-service system, in which companies can integrate the Brazilian Stock Exchange exchange services, also allowing direct trading of Bitcoin, Ethereum, USDT, Litecoin, and Ripple. B3 also received authorization from the CVM to establish and approve the investment in L4 Venture Builder. The fund, with a capital of R$600 million, is intended for investments in the entrepreneurship innovation ecosystem.
Behind the technology: Hathor Network
The technology chosen for B3’s first debenture tokenization was that of Hathor Network. The network promises security and simplification of transactions and negotiations for companies and investors now on B3.
By offering an easily integrated blockchain solution with simple interfaces and without the need for technical expertise in a technology as complex as Blockchain, it is possible to guarantee a key factor in the tokenization process: the potential of the technology. With the Proof-of-Work consensus algorithm, Hathor’s architecture allows for high scalability by offering cost-free, efficient, and uninterrupted operations, even during periods of high transaction volume.
