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Is it time for Real World Asset Tokenization in Brazil?

Is it time for Real World Asset Tokenization in Brazil?

Monday, January 15, 2024

Expedit Capital, as the leading Financial Asset Tokenization Platform in Latin America, is in a privileged position to analyze and understand the current tokenization landscape in the region. Below is a complete overview of financial asset tokenization in Brazil and its evolution in the financial system.

I. The tokenization of financial assets is gaining momentum in Latin America, especially in Brazil, where regulations are being implemented to ensure the security and integrity of tokenized assets.

II. Tokenization of financial assets offers many benefits, such as improving efficiency and transparency in the securities market, increasing liquidity and accessibility of assets, and enabling investment diversification.

III. However, there are also challenges and risks associated with the tokenization of financial assets, such as the need for clear regulations strong protection of investor rights, and the security of digital assets.

IV. As the leading Financial Asset Tokenization Platform in Latin America, Expedit Capital is uniquely positioned to take advantage of the opportunities and address the challenges of tokenization in the region.

What are the laws supervising the issuance of Security Tokens in Brazil?

In Brazil, the issuance and regulation of Security Tokens is supervised by several laws and regulations:

1. Law No. 14,478: This law establishes guidelines and directives for the provision of digital asset services and the regulation of providers in Brazil. Although it does not specifically apply to Security Tokens, it establishes a regulatory framework for services related to virtual assets, such as crypto-currencies or crypto-assets.

2. Law No. 6,385: This law regulates the securities market in Brazil and establishes requirements for the issuance and trading of Securities Tokens. Security Tokens, being considered transferable securities, are subject to the provisions of this law.

3. Securities and Exchange Commission (CVM): The CVM is the regulatory body in charge of supervising and regulating the #securities market in Brazil. The issuance and trading of #SecurityTokens must comply with the regulations established by the CVM.

4. Law No. 13,506: This law establishes administrative sanctions for infractions in the securities market and the foreign exchange market. The issuance of Security Tokens must comply with the provisions of this law to avoid penalties.

It is important to keep in mind that the laws and regulations related to Security Tokens are constantly evolving, and it is advisable to consult updated sources and specialized legal advice to ensure compliance with current regulations.

What type of financial assets can be tokenized with Expedit Capital?

With Expedit Capital, RWA's real-world asset tokenization platform, different types of assets can be tokenized and can generally include a wide range of assets. Here are some examples of financial assets that can commonly be tokenized:

1. Real estate: Real estate, such as commercial buildings, residential buildings, or lands, can be tokenized to allow investors to acquire a fraction of the property and obtain rental returns or capital gains.

2. Renewable Energy: Green energy projects, such as solar or wind farms, can be tokenized to allow investors to participate in the financing of these projects and earn returns from power generation.

3. Bonds and debt: Bonds and other debt instruments can be tokenized to facilitate trading and allow investors to access these assets more efficiently.

4. Stocks and shares: Company stocks and mutual fund shares can be tokenized to allow investors to buy and sell these holdings more quickly and efficiently.

5. Commodities: Assets such as gold, oil, or precious metals can be tokenized to allow investors to acquire a fraction of these assets and benefit from changes in their value.

What are the steps for investing in tokenized assets with Expedit Capital?

To invest in tokenized assets with Expedit Capital the following steps are required:

1. Asset evaluation: Our team of experts carefully evaluates financial assets to determine their suitability for tokenization.

2. Legal structuring: We work closely with legal professionals to ensure that the tokenization complies with all regulations and legal requirements.

3. Issuance of Security Tokens - STO: Once the legal structuring is completed, we proceed to issue the Security Tokens representing the financial assets.

4. Investment Platform: Our investment platform allows investors to buy and sell Security Tokens, track their portfolio, and obtain up-to-date information on the underlying assets.

5. Asset Management: We take care of the ongoing management of the underlying assets, ensuring their maintenance and maximizing returns for investors.

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