Financial Asset Tokenization.

Challenge: Submit to lift (a laboratory for financial innovations coordinated by Fenasbac) a project for tokenizing financial assets and private debts that ultimately represent fixed income. With the aim of facilitating the democratization of finance and fostering economic growth. 

What has been done: Small and medium-sized companies have difficulty accessing capital and credit to expand their operations through banking institutions. On the other hand, there is a group of institutional investors and/or individuals seeking fixed income investments that offer more attractive returns. Within this scenario, we also see banking institutions looking at a new market for tokenization. 

A regulated digital trading sandbox platform for financial assets has been developed. With the architecture developed by 7COMm, companies seeking access to this capital can issue tokenized debt securities, banks can tokenize their credit portfolios for trading, and investors can buy and trade the securities in a secondary market. 

Outcome: A new fixed income market has been created in a previously non-existent secondary market in Brazil. A new digital infrastructure has been established for trading these assets within a fully controlled environment. 

In other words, we have taken traditional financial assets such as Bank Credit Notes, Real Estate Credit Notes, Bank Credit Note Certificates, among other regulated asset classes, and developed a digital representation for our contracting partners to issue and understand their practical functioning within a secure and controlled environment. 

Among the obtained advantages, the following stand out: 

• Operational efficiency, leading to access to cheaper capital or more attractive returns for these actors;
• A DLT network, similar to the Central Bank and permissioned, providing much greater control and privacy to manage the lifecycle of these now digital traditional assets;
• Replacement of asset registration within a registrar;
• An extremely regulated market, with laws and regulations governing digital securities within the Central Bank.