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Advantages of Consortium Tokenization

The advantages of consortium tokenization and boost your investments efficiently and safely.

The financial market continues to redefine the way we deal with money, business and investments. One of these promising innovations concerns the tokenization of contemplated consortium quotas. In practice, this means that these assets can be represented and traded digitally on a blockchain-based platform.

The value of a covered card can be negotiated with a company that will buy it. Having a letter of credit on hand is a way to have your asset quickly, without having to wait for it to be drawn, however, some unforeseen events may occur and you may have to sell your consortium because you are unable to pay it.

Consortia have been a popular option for purchasing goods and services in Brazil for many years. This is because they offer a viable alternative to traditional financing, allowing people to pool their resources to purchase goods in installments, without the need to pay interest. Tokenization appears to elevate this process to another new level of efficiency and accessibility.

Higher profitability

For the buyer of the contemplated share, the income is the difference between the original value and the discount value. For buyers of consortium tokens, the gain can be either in the income that occurs during the waiting time for payment from the administrator, in the opportunity to split bids and resell quickly in the market, or even in the purchase of shares in groups to take cheaper credit. In both situations, the tokenized consortium share is a great investment, with better performance than traditional fixed income securities.

Access to a global market

Tokenization could allow consortium shares to be traded on a global scale, which could also increase demand for these assets and potentially raise their values.

The future of high liquidity

With tokenized consortium shares, consortium members can sell their shares more quickly and efficiently, which is especially useful in financial emergencies, for example.

Transparency and security

Blockchain transactions are recorded in an immutable and transparent way, which reduces the risk of fraud and increases investor confidence.

Cost reduction

Tokenization eliminates intermediaries in many processes and, consequently, costs and fees for consortium members.

Sell on the secondary market

Consortium tokens will soon be on the secondary market. Therefore, being able to buy tokens and resell, appropriating an intermediate value between future gain and opportunity, is a tangible result.

Furthermore, the tokenization of consortium shares not only benefits participants in this market, but also the financial market in general. As blockchain technology continues to evolve and integrate more deeply on different fronts, the tokenization of these assets represents a significant step towards the decentralization of investments and financial inclusion.

Cássio Krupinsk, CEO of BLOCKBR.

Source: Monitor Mercantil

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