Buying business token is becoming more and more routine in the economy – even though it is still concentrated in some niche markets – this leads us to a question: will the tokenization of everything happen?
We can draw a parallel with the digitization of everything, something that seemed unthinkable just over 10 years ago and which is in full swing. Evidently, everything is a force of expression, but digital is already a natural part of our routines.
Tokenization is a major strand of the concept of everything digital and the tokenized economy will be no different.
The NFT, the first form of transactional token that we are publicly aware of – even though tokens in blockchain games were pioneers for trading – showed the world the possibilities.
Even though it seems unrealistic for the vast majority of people and companies, today there is a large growing tokenization market and more sectors willing to offer their products, services and assets in this way.
BLOCKBR, a native web 3.0 company, will talk about whether we are moving towards a society connected by tokens!
CAN ANY ASSET BE TOKENIZED?
Technically, every asset can be tokenized, be it real, financial or digital.
When we talk about digital assets, we imagine cryptocurrencies, which are monetary tokens, created to be decentralized currencies, without regulation of banking and monetary systems. But here the thinking is simple, after all digital currency is the very essence of tokenization.
On the other hand, it is possible to tokenize a car, generate tokens from a grain crop or tokenize works of art, among many other goods, products and services.
The consensus is that blockchain technology with smart contracts only needs a design that gives transactional value to something so that it can be digitally represented by a token.
This principle makes tokens increasingly present in economies and not just in companies; people can transact tokenized equity more quickly and profitably.
HOWEVER, NOT EVERY ASSET MUST BE TOKENIZED
The must, in this case, is both an advisory and a normative tone for assets:
- That still need legal and regulatory definitions;
- Where tokenizing does not provide the satisfactory cost-benefit ratio.
For the first question, each country has its own regulations for trading different assets. Real estate is the best example and even so, real estate tokenization is a reality and should move from US$ 2.3 billion to US$ 5.6 billion between 2021 and 2026.
Securities in tokens are another category that is strongly regulated by the CVM and which is growing rapidly, which demonstrates that the main question is not whether the tokenization of an asset will be allowed, but when.
For the second question, the analysis is individual, whether the good or right will have the financial return that is justified in offering tokens to the market.
This study is carried out by an asset tokenization company considering the expected gain and investment in tokenization.
Even in assets that are highly liquid through traditional offering processes, it is important to weigh the costs against the benefits of tokenization. Meet some of them!
WHAT ARE THE EXISTING BUSINESS TOKENS?
A good way to measure the current status of tokens in the economy is to know the categories and what assets can be represented by them. See the main ones.
SECURITY TOKENS
These are tokens backed by securities under CVM regulation. These are negotiable assets – shares, debentures, guarantees and others. The investment receives remuneration paid according to the conditions in the offering’s smart contract.
STRUCTURED TOKENS
They are the receivables anticipation tokens, an excellent way to generate passive income with rates above those of the market. The company avoids the discount with a bank and can offer a better price to investors or have a higher return at a lower cost.
SUPERSTRUCTURED TOKENS
These are real asset tokens – real estate, vehicles, inventory, crops, livestock, equipment, artwork and other assets. It is not by chance that it is the type of token that has the best growth rate, as it is an excellent trading and investment possibility accessible to companies and individuals.
WHEN CAN WE EXPECT EVERYTHING TOKENIZE?
The excellent results in various sectors of the economy and the structuring of the tokenization market guarantee the credibility of the token and oppose it to the strong speculation of cryptocurrencies.
The regulation of digital currencies itself is a divisive milestone and also favors tokens as a supply mechanism and not a high-risk investment.
But the good news is that asset tokenization is just beginning in the world, and Brazil is advancing in the use of technology and with many initiatives to favor it.
With the great technological transformations – internet, e-commerce – their entry speed in societies was much greater than the speed of market adaptation and this will not be different with business tokens.
IS THE TOKENIZED ECONOMY POSSIBLE?
Yes, but it is still difficult to predict when it will happen.
- Technological advances are still the main barrier for many regions of the world, in Brazil we live in very different socioeconomic realities;
- Market acceptance is something that will continually grow, as it has with online shopping that is now as natural as messaging. Furthermore, business tokens are not subject to speculative bubbles;
- Costs to tokenize will reduce over time, as with everything technology is the driver of innovation;
- Token regulation appears to be the least of the hurdles, and government advances in this area are significant.
One fact is that tokenization of everything – or everything that pays off – is underway and could surprise as much as the most cryptocurrency bullies.
Tokenization infrastructure for the financial market: check out BLOCKBR’s performance!
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divider to increase the credibility of technology for those who want to invest in tokens.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
BLOCKBR Digital Assets is a fintech native web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the asset tokenization process.
The supply of tokenized assets 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.
Come tokenize your business and put it on a higher level in the market!
