CriptoFácil – BCG estimates that the tokenization of global illiquid assets will be a business opportunity of US$ 16 trillion by 2030. Therefore, it is important to understand some benefits that this market can bring.
Using blockchain technology provides greater efficiency and reduced human errors in the process, issuance and management of securities, which also reduces costs. In addition, the use of tokens brings other benefits.
Its tokenization can increase liquidity among traditionally illiquid and non-fractionated assets. In this way, investors receive greater democratization of diversifying their portfolio with previously unavailable assets.
Benefits of tokens
In addition, we have numerous benefits, some of the main ones being that blockchain technology promises to offer issuers and investors.
The use of blockchain technology eliminates the need for traditional intermediaries. Resulting in reduced settlement times and cost savings for issuance and other processes (eg corporate actions, reconciliation).
Automation Transparent record keeping, using the public internet can save a lot of money. Blockchain reduces bond issuance costs by up to 90% and fundraising costs by up to 40% compared to traditional private placements.
The financial industry spends nearly $1 trillion a year on compliance, but blockchain reduces the risk of error and makes managing complex compliance prerequisites cheaper and easier by writing compliance rules directly into each token.
An estimated R$20 trillion is locked up in private equity and trillions in real estate, but tokenization opens up assets to a global pool of investors and offers opportunities for previously illiquid or indivisible assets (such as private equity and real estate).
Ultimately, blockchain promises to provide a golden source of truth for all parties to hand over. With ease in keeping the limit table up to date and reduces record keeping disputes, being these from net income sharing agreements, dynamic ETFS and other unmanageable offerings in the past.