Investing in Brazilian RWA tokens still seems a long way off for a good number of Brazilians, despite the fact that tokenization is democratizing investments and particularly benefits small investors.
The globalization of knowledge has brought companies closer to the possibility of raising funds in a more effective way, combining high-level security, transparency, total availability for investors and being able to offer real asset tokens from 50 reais.
So why don’t RWA tokens appreciate on Brazilian exchanges as expected?
Amid all the questions, one thing is certain: Brazilians have learned that the return on savings is far from being an investment and that digital assets offer more return at a lower cost.
BLOCKBR, a company that develops tokenization infrastructure, will talk about the challenges of RWA tokens and how Brazil is preparing for the tokenized future!
WHAT ARE RWA TOKENS
RWA (real world assets) tokens are crypto-assets created on the blockchain, distributed on a digital token offering platform and which represent assets present in the real world.
It is important to emphasize that the concept of real is not conditional on the tangibility of the asset, but rather on the fact that the market as a whole recognizes that there is collateral backing the asset and, for this reason, RWA can cover different asset classes, such as:
- Real estate tokenization;
- Vehicles;
- Machinery and equipment;
- Commodities: gold, agricultural products and others;
- Works of art and collectibles;
- Private and public bonds such as precatórios;
- Company shares;
- Rights such as consortium shares and carbon credits.
The main issue in understanding what an RWA token is is the backing of a real asset, something that the company can keep as a guarantee deposit for the operation.
Cryptocurrencies are not RWA tokens because they do not have a guarantee deposit and are valued based on the supply and demand conditions at the time of each transaction.
Also known as tokenized assets, RWA tokens can serve as sustainable and reliable digital asset classes that put decentralized finance on a level playing field with traditional finance.
CHALLENGES FOR VALUING RWA TOKENS ON EXCHANGES
REGULATION AND COMPLIANCE
The regulation of RWA tokens is in the final stages of development in Brazil. It began at the end of 2022 with the sanctioning of the Cryptocurrency Law and reached the Legal Framework in June 2023.
However, crucial issues have yet to be regulated. The main one is to define the scope of action of VASPs, service providers with digital assets.
It is important that these steps are taken with the greatest agility so that Brazil’s outstanding performance in the tokenization market does not have its image compromised by the delay in regulating relationships and responsibilities, generating distrust for potential investors.
MARKET LIQUIDITY
Liquidity is fundamental for any financial market to function efficiently and attractively, and in the case of real-world tokens, low liquidity is a significant obstacle, as it represents a disincentive for investors.
KNOWLEDGE AND FINANCIAL EDUCATION
The real asset token, despite its growing popularity, is still a new world for most Brazilians, even among professionals in the financial system and capital markets.
In addition, the technological framework of tokenization – blockchain, smart contracts, decentralization – emerged in 2008 with the creation of bitcoin and for a long time was linked only to cryptocurrencies, inheriting from them the distrust of speculative bubbles and scandals such as the FTX case.
Continued financial education on real asset tokens, DeFi and other related topics is needed to increase investor confidence and for companies that see the many business benefits of tokens.
PROSPECTS AND SOLUTIONS FOR THE FUTURE OF BRAZILIAN RWA TOKENS
DREX WILL BE A BOOST FOR RWA TOKENS
The future implementation of drex, the Brazilian virtual currency, scheduled for the second half of 2025, will boost the RWA tokenization market in Brazil through numerous use cases.
The spread of the fiat currency token as a means of digital payments will act as a seal for the credibility of tokens as business vectors, where drex will act as a stable and secure transactional currency, replacing cryptocurrencies and their volatility.
VASP REGULATION WILL INCREASE CREDIBILITY
The main players in the tokenization ecosystem are the VASPs or Virtual Asset Service Providers, companies that act as intermediaries between RWA projects and investors such as BLOCKBR:
- Study the cost-benefit ratio of the real asset token;
- Developing the necessary legal documentation;
- Create the RWA tokens and the corresponding smart contract;
- Distribute the tokens for trading on the sales platform;
- Governance of tokenization.
In addition to the steps related to the tokenization process, it will have a series of legal and compliance responsibilities to contribute to a solid, secure and reliable cryptomarket for all, both offering companies and tokenists.
BACEN, the regulatory body for cryptomarket activities, is expected to consolidate regulation of VASPs in the first half of 2025.
INTEREST OF INVESTMENT ADVISORS (AAI)
Investment tokens should increasingly be on the agenda of the AAI market, the autonomous investment advisors, who see this business model as a great opportunity to diversify products, gain agility and increase turnover.
The popularization of the token, combined with the arrival of drex, will push the investor market for a more agile, highly available, secure and transparent option for investing in a wide variety of tokenized financial products.
TOKENIZE ASSETS WITH BLOCKBR AND BOOST YOUR RESULTS!
Tokenization is a reality in the market, with an increasing number of companies and people generating revenue with tokens. Recent actions by BACEN and the digital real are increasing the credibility of the technology.
For the success of your project, it is essential to have an adequate and efficient tokenization infrastructure for the financial and other markets, comprising:
- Technical, fiscal and legal feasibility study;
- Issuance of tokens and smart contracts with transparent governance;
- Distribution of tokens on a simple and secure sales platform;
- Efficient and assertive tokenization governance.
Discover BLOCKBR’s infrastructure work for regulated and unregulated markets through an All-In-One platform that offers interoperability between assets and investors.
You don’t want to see your competitor get ahead to make more money.
Or do you want to?
BLOCKBR is a fintech specialized in building infrastructure that allows a simplified migration to tokenization, meeting the needs of a highly regulated environment.
Our main mission is to develop autonomy for the capital market so that it can move, grow and potentially access digital assets. We develop legal and technological solutions that create opportunities and simplify the way in which financial services will operate, from the structuring and new roles of the agents involved to the management and supply of these assets, generating efficiency, lower costs and greater speed of liquidity.
We take care of the entire technological infrastructure for tokenization and regulation, simplifying your life so that you can take care of your customer relationship.
Visit http://www.blockbr.com.br or @blockbr_ on social media and find out more!