Expert points out 5 advantages of tokenization in the energy market

Expert points out 5 advantages of tokenization in the energy market

The marketing of renewable energy certificates (REC’s) is gaining a lot of space among entrepreneurs in Brazil and in other regions of Latin America, especially with the possibility of tokenization of these assets. With these certificates, companies can attest that the energy was generated from renewable sources. An alternative to this greater transparency is the tokenization of RECs on Blockchains.

To know a little more about the subject and learning about the advantages of using blockchain in this segment, Cointelegraph spoke with Cassio J. Krupinsk, CEO of BlockBr. Next, the expert lists five advantages of investing in tokenization in the renewable energy market:

1 – Flexibility and accessibility: “Tokenization will allow greater flexibility in the possibilities of products and will solve, among other things, liquidity problems in the energy sector by allow the exchange of tokenized assets every day, 24 hours a day, 7 days a week, without borders“.

two – Without intermediaries: “Reduction of indirect costs with bureaucracy and intermediaries, since smart contracts make the entire investment process faster and safer“.

3 – governance; “It will transform the sale process from static to dynamic, improving the transparency and automation of the process, even allowing the international transfer of tokens in seconds.“.

4 – Division from the investment: “With tokenization, true portfolio diversification can be achieved. Thus, investors can better mitigate their risks by not having to buy 100% of an asset and, instead, may participate partially“.

5 – Security: “Audit of assets and legal documents in accordance with standards that guarantee the solidity of the investment. Tokenization requires compliance with KYC (Know-Your-Customer) and AML (Anti-Money Laundering) procedures, as well as other actions and disclosures required by relevant legislation protecting investors.“.

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Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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