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Do you know the difference between financial tokens and real asset tokens?

Many people, when it comes to buying to kens of assets, rights or projects, are faced with an interesting question: invest in financial tokens or in real assets tokens?

Fortunately, it’s the so-called good dilemma: both options are excellent ways to invest with a lot of security, expectations of great gains, and a perfect working dynamic for the modern, busy life.

Knowing the two forms of tokenization, their applications and advantages is an excellent start to making the most appropriate choice at each moment of your financial life.

Are you starting out as an investor through tokens? Do you prioritize safety more?

Want to diversify your investment portfolio with asset, rights and project tokens?

BLOCKBR, a web 3.0 native company, will talk about these two alternatives of investing and help you make the best decisions!

FINANCIAL TOKENS AND ASSET TOKENS: WHAT IS THE DIFFERENCE

FINANCIAL TOKENS

These are receivables anticipation tokens, a financial transaction that is quite common in the financial market and that is growing in the tokenization market for the series of advantages of tokens in the operation.

In this way, the company anticipates the credit rights and invests them in the very short term in its cash flow or in new projects, remunerating the buyers of the tokens in various ways.

REAL ASSET TOKENS

Real asset tokens are the cryptographic representation of all the physical or digital assets that companies and people own and that can be traded. The list is long, from real estate and works of art to equipment, stocks, intellectual property, and future rights (crops, contracts).

Asset tokenization, as we will see in this article, allows for more agile, secure, and cost-effective trading.

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ADVANTAGES OF FINANCIAL TOKENS

FOR THE PROVIDERS OF RECEIVABLES

HIGHER LIQUIDITY

In financial tokenization, the biggest competitive differential in relation to banks and institutions is the possibility of fractioning the asset that one wants to offer – the company can fragment the receivables into small parts, with values accessible to everyone.

This greatly increases the potential investor base and accelerates the liquidity of the operation.

MORE PROFIT IN THE OPERATION

In the tokenization of receivables, it is possible to avoid the expenses of the operation, because the offer is direct to the market, without intermediaries and the operational costs involved in the operation when it is done in financial institutions, which results in a more profitable anticipation of receipts.

HIGHER ANTICIPATED CASH GENERATION

Anticipating receipts is a common practice and often necessary to balance the cash flow or to have immediate resources to finance new projects. In financial tokenization, the company can get a larger amount with lower liquidity and costs and project more growth.

FOR INVESTORS IN RECEIVABLES

PRE-ESTABLISHED INCOME

Those who invest in financial tokens already know the terms of income, term, and how they will be paid. Forconservative or beginner investors, it is a great way to start investing in tokens.

All this is guaranteed with the smart contract, an encrypted file on the blockchain that electronically controls the conditions of the transaction, without human interference, changes, or delays.

LOW-RISK INVESTMENT

The anticipation of receivables is guaranteed by the volume of future revenue taken for granted in the company’s accounts receivable and is committed to the operation under pre-established conditions. There are, therefore, no market factors that can impact the contracted remuneration.

DIVERSIFY THE PORTFOLIO WITH SOLIDITY

Varying financial product profiles in an investment portfolio investment portfolio is a challenge for bold investors who do not want to put all their eggs in one basket. Financial tokens confer a solidity that balances average gains with volatile assets.

DISADVANTAGES OF FINANCIAL TOKENS

No investment is without risk, and it would be no different with receivables tokens. Knowing them is the starting point to invest with tranquility and make the money work for you!

INDEBTEDNESS

In the traditional market and in the tokenization of receivables, non-compliance with the agreed conditions can occur. Although it is rare, the investor should be aware and surround himself with the possible guarantees.

FORCE MAJEURE

During the term of the tokenization, something may prevent the offeror from fulfilling the signed agreement, such as a fire, for example, that causes the company to lose its ability to sustain itself. The conditions in case of a force majeure event must be analyzed.

HOW TO DEAL WITH RISKS

The main measure is to trade tokens through an experienced and market-recognized receivables anticipation tokenization company like BLOCKBR.

It is the obligation of its business to do all the necessary analysis before entering into a partnership to tokenize a company’s receivables. In addition, it is responsible for making all the conditions of the offer available in the smart contract.

VANTAGENS DOS TOKENS FINANCEIROS

ADVANTAGES OF REAL ASSET TOKENS

FOR ASSET HOLDERS

ASSET FRACTIONATION

This is one of the most important benefits of real asset tokens for investors of all budget levels: the possibility for owners to fragment an asset to offer it to the market.

One example is real estate tokenization: by fractionating a plot of land or a house into 1000 tokens, it is possible to capture more investors than the target audience to purchase an entire property – large investors and real estate funds.

MORE PROFITABILITY

Asset token transactions are peer-to-peer, between the digital wallets of the giver and the investor, without intermediaries. This eliminates a number of costs associated with traditional market investments and helps generate more profit.

In addition, because it is a highly attractive investment, demand is higher and this makes it possible to make larger offer values, because fractioning dilutes the impact of an increase.

MORE LIQUIDITY

This is one advantage of asset tokens and financial tokens: the greater liquidity in the offering of the assets by fractionating them – with each part costing much less, it is possible to get more investors and raise funds in less time.

FOR INVESTORS IN ASSET TOKENS

WIDE VARIETY OF PRODUCTS

The tokenization market is growing in variety of tokenized assets, from physical assets to business projects and becoming a shareholder with great returns. Furthermore, it is possible to invest in tokens with less than 100 Reais, which attracts an audience that is outside the investment world.

AGILITY AND AVAILABILITY

The blockchain, the technological environment that hosts tokenizations, works seamlessly. This way you don’t miss out on great investment opportunities because the broker has already closed.

You can buy gold tokens and many other offers at any time of the day, even at dawn and from anywhere on the planet. All you need is a BLOCKBR account.

DEMOCRATIZATION OF ACCESS

With the fractionalization of assets and the full availability of the system, tokens are a form of investment accessible to all people, including those who can only start investing with little until they gain confidence in this market.

DISADVANTAGES OF REAL ASSET TOKENS

LACK OF REGULATION

One must differentiate regulation from legality; tokens are legal in Brazil and fall under the laws of the Civil Code. Therefore, there is no illegality in buying and selling asset tokens.

As for regulation, experts understand that it should happen in the very short term with the Cryptocurrency Act being passed by Congress, which should happen in 2023.

FRAUD RISKS

Like any investment, digital assets are not immune to financial crime. This reinforces the importance of investing through recommended token exchanges with a good reputation in the market.

HOW TO BUY TOKENS?

You can buy tokens through the token marketplace of a tokenizing company like BLOCKBR with an account and a digital wallet.

You will find excellent opportunities in a high-tech environment for you to make your investments safely and be able to make the best choices.

BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital assets, in the process of tokenizing assets.

The supply of physical assets and tokenized financial assets, both current and new, 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 ?

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