Tokenization can tear down barriers between the physical and digital worlds - after all, any tangible asset (like real estate or a vehicle) can be turned into a token and traded via blockchain. The rise of CBDCs, central bank digital currencies, is expected to speed up tokenization adoption even more - this outlook also applies to Brazil, which is looking forward to the launch of the Digital Real in 2024. 

"Nowadays, with cryptocurrencies, you have to swap dollars or reais, for instance, for bitcoin. Users still rely on centralized exchanges to do that,"

"With the Digital Real, currency exchange will be direct since everything will take place on the same network. Let’s say I have a coin on the blockchain and there’s a token representing an asset on that same blockchain - you just need to swap the two." 

Industry professionals concur that tokenization is likely to gain steam with CBDCs. In the report "Money, Tokens, and Games: Blockchain's Next Billion Users and Trillions in Value", Citi bank underscores that by 2030, US$5 trillion in CBDCs should circulate in the world’s largest economies. 

"Tokenization of tangible and financial assets may be crucial in propelling blockchain usage," the study states. "Tokenization is projected to grow 80 times in the private market and be valued at nearly US$4 trillion by 2030." 

Brazil is expected to join this global movement. In the report “Finanças Descentralizadas: Tokenização de Títulos e Valores Mobiliários” (Decentralized Finance: Tokenization of Securities), conducted alongside Accenture, ANBIMA maintains that the Digital Real will serve as a catalyst for tokenization. 

In the report, the association indicates that the arrival of the CBDC could benefit tokenization: one opportunity is the increased efficiency in the settlement process, with DvP (delivery versus payment) combined with the Digital Real. 

Keeping an eye on this strong trend, Marcos Viriato emphasizes the importance of companies and financial institutions getting ready to embrace tokenization - and notes this should be a gradual process.

"Tokenization has to be carried out in stages, it’s a journey. And you must stay on top of regulation," he asserts.

"Parfin’s mission is to guide and advise companies throughout this process: explaining the first step, the second, the third... until the company has all its assets tokenized, being sold on the marketplace."

Parchain, Parfin’s blockchain, offers a secure setting for tokenization 

When financial institutions decide to put the tokenization of assets into action, they face several challenges: security, compliance, and privacy are among them. However, there was no solution on the market that covered all these needs. 

As a result, Parfin developed Parchain, a permissioned layer 0 blockchain compatible with EVM. The solution provides full transaction privacy and ensures secure and private asset tokenization, with control over authorized access. 

Parchain is already set up to meet the Brazilian Central Bank’s privacy and security requirements. But the platform goes beyond: recognizing the potential of tokenization and digital assets, Parfin designed Parchain with interoperability between blockchains - this way, institutions can carry out transactions between different networks, be they public or private. 

Download the Parchain tokenization use case and get a handle on how it works in practice! 

Reach out to Parfin and find out more about the company’s solutions for asset tokenization.