Bradesco entered the world of cryptocurrency with the issuance of the first tokenized credit notes. The operation, carried out in partnership with Bolsa OTC, tokenized approximately R$2 million in bank credit notes, also distributed by Bradesco.
Bradesco launches asset tokenization software
Bradesco (BOV: BBDC4) has entered the crypto era, being one of the first organizations to use blockchain technology in its operations in Brazil. The bank announced on January 13, 2023 that it had tokenized the first batch of bank credit notes, worth approximately $2 million, as part of a pilot program to test the functionality of these technologies.
The operation, which Bradesco claims is the first to be supervised and approved by a central bank, was carried out in partnership with Bolsa OTC and through a regulatory sandbox that allows financial institutions to conduct this type of testing using new technologies.
Regarding the significance of this, Bradesco CEO Edson Moretto stated:
We continue to work and test the benefits of blockchain technology using its innovation system, Inovabra, so that new processes are available to our customers.
Asset tokenization business
Some analysts consider asset tokenization, the process of representing real-world assets on a blockchain, as the next step in market technology. Technology could become a trend for trading in financial markets in the future, as a report released in December by BCG and ADDX predicted that it would become a $16 trillion business opportunity by 2030.
Bradesco is the second bank in Brazil that is currently experimenting with tokenization and tokenized assets. The first to do so was Itaú Unibanco, which implemented a series of tokenization tests by issuing assets to bank employees and customers in July.
At that time, Itaú also announced the creation of its own tokenization unit, which will focus on providing tokenization services to customers, allowing them to tokenize and sell these assets through a platform created and controlled by the bank.
More banks will include tokenization as part of their service portfolio in the future. Many of these institutions have been waiting for the latest cryptocurrency law, passed in December, to get a clear picture about the compliance issues for offering these token services.
With information from Bitcoin.com