Bradesco, one of the largest banks in Brazil and the third largest in Latin America, has entered the world of cryptocurrency with the issuance of its first token loan notes. The action, carried out in partnership with Bolsa OTC, encoded nearly R$2 million in bank loan notes, also distributed by Bradesco.
Bradesco launches asset tokenization project
Bradesco, one of the largest banks in Brazil and Latin America, has entered the crypto era, being one of the first companies in Brazil to use blockchain technology in its operations. On January 13, 2023, the bank announced that it had tokenized the first payment of nearly $2 million in bank loan notes as part of a pilot program to test the functionality of these technologies.
The operation, which Bradesco says is the first to be monitored and approved by the country’s central bank, was carried out jointly with Bolsa OTC and uses a regulatory sandbox that allows financial institutions to conduct such tests using new technologies.
Commenting on the importance of this, Bradesco Managing Director Edson Moretto said:
We continue to take advantage of the benefits of blockchain technology by using its proprietary innovation system, Inovabra, to bring new functionality to our customers.
Asset transfer business
Some analysts consider asset tokenization, the process of representing real-world assets on a blockchain, as the next step in market technology. Technology may become a trading trend in the financial markets in the near future, and a report published in December by BCG and ADDX predicts that it will become a $16 trillion business opportunity by 2030.
The second bank in Brazil is Bradesco, which is currently experimenting with tokenization and token assets. The first to do so was Itaú Unibanco, which in July implemented a series of coding tests that provide assets to bank employees and customers.
At that time, it also announced the creation of a private token unit with a focus on providing token services to customers, allowing them to tokenize and sell these assets using a platform created and controlled by the bank.
According to local sources, many banks will add tokenization as part of their service portfolio in the near future. Many of these companies are looking forward to the latest cryptocurrency law passed in December to get a clear picture of the compliance issues for offering these tokenization services.
What do you think of the asset tokenization and Bradesco verdict in Brazil? Tell us in the comments section below.
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