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  • Tokenization of vehicle financing contracts revolutionizes the market

Tokenization of vehicle financing contracts revolutionizes the market

Tokenization is already a trend reinforced by the web 3.0 proposal to expand the virtualization of relationships.

On the path of no return towards the digitalization of economies, tokenization is a more than proven form of agility and security in the offering of goods, products, services and rights and is estimated to reach US$ 16 trillion, or 10% of global GDP , according to a study by the Boston Consulting Group (BCG) in partnership with ADDX until 2030.

Even traditional financial institutions are already preparing to transform the sector with initiatives in this direction. The tokenization of vehicle financing contracts could be next.

The process would basically be the registration of a vehicle financing contract, for example. On one side, the bank provides the credit offer and on the other, the buyer acquires the token, starting the process of releasing the bank x owner of the asset. Everything happens via blockchain, generating digital adherence and total control of processes between the parties. This involves using the latest technology to promote ease and widespread operation and scale up the offer of financing for vehicle purchases.

In other words, with blockchain intermediating transactions, everyone involved would benefit from a robust and integrated platform, which makes it possible to record credit operations quickly, safely and efficiently, resolving bureaucratic processes that would take days in minutes. Not to mention the automation of payments, which would help avoid delays, simplifying financial management.

In addition to the great possibilities of tokenization for the economy, the opening of the Central Bank to the topic, driven by the development of Real Digital, which is scheduled to launch in 2024, also promotes the sector and its applications.

With this entire scenario solidifying in the Brazilian market, institutions tend to follow a natural evolution that leads to new ways of doing business, focusing above all on financial inclusion, and of course, making life easier for many people.

Given the entire context, tokenization is already a trend reinforced by the web 3.0 proposal to expand the virtualization of relationships. Therefore, commercial transactions across the world on multiple fronts promise to play an increasingly significant role in transforming the financial landscape.

*Cássio Krupinsk is CEO of BLOCKBR

 

Source: Cointelegraph

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