The cryptocurrency market is constantly growing. With it, arose the process of “tokenization”, which has gained enormous relevance on the national and international stage. Definitely, consists of the process of transforming any asset into smaller and/or fractional shares in a decentralized ecosystem, using smart contracts together with the technology”blockchain”. This process, in addition to allowing guarantees, simplicity, transparency and technological security, facilitates trading from giant markets, such as DeFi or cryptocurrency exchanges.
With the great rise of this universe, the market has created several new types of tokens for different purposes. There are several options for token categories, of which the following can be highlighted: Main 4: Utility Tokens, Non-Fungible Tokens (NFTs), Security Tokens, and Payment Tokens.
For Rodrigo Pimenta, CEO and founder of Hubchain Technology, tokenization is not a recent topic, this topic has been discussed in the market for at least 10 yearsHowever, it seems that we are now living in that era. Recently, B3 CEO Gilson Finkelsztain noted that the company should start using “blockchain” in the tokenization of physical assets. With the guarantee of participation in the Regulatory Sandbox of the Brazilian Securities Commission (CVM), the partnership between the fintech Vórtx and the holding QR Capital, carried out regulatory tests of the first tokens in the capital market in this sandbox using “blockchain ” .
Pimenta affirms that the great advantage lies in the fact that the “blockchain” is fraud-proof. “We are talking about transforming any asset into a token, whether real or financial, when it comes to tokenization, it is this technology that allows the exchange of information, in which all those involved in the network guarantee the veracity of the terms and conditions.“.
Rodrigo affirms that it is important for us to mention the fact that trust is the key to business. After all, that’s the main problem when it comes to credit..
“We are going to suppose that a law needs a human interpretation to be applied. When we translate a code to ‘blockchain’, it is he who does this operation from a consensus network. With that, the tokenization of financial assets has grown in the eyes of the world market, since it eliminates the need for trust and decouples risk assessment.says the CEO.
According to him, the big obstacle at the moment revolves around regulatory challenges, facilitated by the Howey test, which prohibits offering any type of asset to a Brazilian citizen, requiring express authorization from the CVM (Securities and Exchange Commission) and, even so, be released only in some special cases.
Today, it is easy to see how digital assets on the “blockchain” promise to impact the new economy. But what is the magnitude of this impact? Actually, we still don’t know.
“The fact is that blockchain technology is here to stay in the world economy and its main pillar is to allow a more efficient use of resources, reducing the costs of operations, expanding existing financial products and their developments, such as DeFi, GameFi, SocialFi. and InsuranceFi, who still need a better deal with regulars. The first steps have already been taken and this is already a magnificent sign of importance”, affirms Rodrigo Pimenta.
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