The asset tokenization market is still going strong, with high expectations for the coming years. It is estimated that, by 2030, the market will generate more than 2 trillion dollars, an impressive figure for a technology that 10 years ago was in its infancy, disbelieved by most investors and unknown to the general population. Today, tokenization is more than a way of investing and has become, for many companies, a solution that can be integrated into their routine. There are several attributes that make this resource interesting, such as its liquidity, security and practicality. Many of these elements justify and explain why the asset tokenization market has grown so much and promises wonders for the future. And, more than just profitable, this tool can be democratized and put at the service of your company through an investment advisor.

Asset Tokenization: From a Fearful Start to a Trillion Projection

Although the expectations for the asset tokenization market today are extremely positive, we must acknowledge that the beginnings of this new technology were, to say the least, fearful. Like any technology, tokenization was first viewed with suspicion when it was born in 2008. It was at this time that the first investments were made in this type of financial asset through the blockchain and, specifically, the cryptocurrency ETF Bitcoin. Today, assets are much more varied and spread across other categories, such as the Ethereum ETF, far beyond the world’s first cryptocurrency. The presence of blockchain technology is observed in most assets, as this is a resource that offers all the security and unity identified in these assets. As a result, the market began to heat up due to the variety of assets, which came to be called tokens or digital assets.

Tokenization today and in the future

The asset tokenization market is currently going strong in Brazil – at least that’s what Visa, the authority on means of payment in our country and around the world, can attest to. According to the credit card company, transactions practically doubled from 2022 to 2023. Another factor that stands out is that out of every 5 online payment transactions, 2 are tokenized. That’s at least 20% of all transactions, an astonishing figure that shows how current and widely used the feature is. And it’s not just a Brazilian fad – quite the contrary – investments in US treasury bonds are already offered as tokenized funds. Currently, the market for the tokenization of securities assets in the United States amounts to more than 1.5 billion dollars, and this figure is expected to double by the end of 2024, reaching almost 3 billion dollars.

Understanding the ‘Cold Start’ and Initial Challenges

The beginnings of tokens are closely linked to the creation of Blockchain technology, but as we’ve said, they had a cold start. Until recently, the asset tokenization market circulated practically only with crypto, and it was only a few years before it spread to other securities. It was in 2017 that diversified assets really took off and expanded in the market. At that time, several million dollars were already circulating among the main tokenized assets that became securities for companies, art and other content. But even in its content form, the token met with resistance and it was a challenge to convince the general public that the technology was really interesting. But there were still historic highs and by the end of 2020 the market had already reached 15 billion dollars in financial turnover.

Barriers and opportunities

Since 2020, the asset tokenization market has come of age, and today there is much more opportunity, even if there are still considerable barriers to this form of investment. Undoubtedly one of the most persistent and considerable challenges is the suspicion of the general public, even SMEs. Large entrepreneurs still don’t know how to deal with the market and find it difficult to take advantage of its main advantages and opportunities, such as the liquidity and security of these assets. However, that’s what the BLOCKBR whitelabel tool is there for: to safely and conveniently simplify asset trading. With this, it becomes:

• Ideal for private businesses and fintechs;
• Created to serve SMEs;
• Excellent for entrepreneurs looking for investment;
• Separate environment for token issuers and investors;
• Secure registration of shareholders and investors;
• Space for electronic signatures and document registration;
• Allows investment management.

All this is possible through BLOCKBR’s Whitelabel platform. The service brings with it all these elements that make it easier for any SME to raise investments through the asset tokenization market. All with practicality, more security, protection and in accordance with Brazilian laws and national and international cybersecurity policies.

More opportunity for your business

Any company has a lot to gain from bringing the asset tokenization market into its routine, for starters it’s an excellent way of gaining access to capital. Through Whitelabel, for example, you can trade your company’s assets conveniently, securely and generate income with rapid liquidity. This market also offers flexibility, since tokenized assets can be customized and new investment models created based on the technology. It’s also an affordable way for more investors to inject money into your company.

Beyond the Trillions: The Present and Bright Future of Asset Tokenization

As we have seen, the token market promises a lot for the future, but its high expectations go beyond the estimated trillions, it also offers a diversified investment future for companies all over the world. In Brazil, your SME can also take advantage of all these benefits through the Whitelabel, the DREX and the VASPs. Raising investment is essential, and with tokenized assets this is accompanied by a heated market, investors actively seeking out these new opportunities and your company’s entry into a new area that brings several advantages. This tool must be taken advantage of and conquered through BLOCK BR.

Migrate to tokenization with BLOCKBR infrastructure, Access Funding with BLOCKBR Plugged-in Investment Advisors.

The unlocking of the capital market, giving access to new types and structures of investments through tokens, is bringing a universe of opportunities every day. Blockchain technology is an environment of high security and transparency, as well as being a backdrop for the creation of new operating models. To understand which tokenization model and infrastructure you can use in your operations, you just need to understand the opportunities you can take on, whether as a structurer, originator or distributor/investor. Become an investment advisor for digital assets (structured tokens) through BLOCKBR. You can also be an asset structurer and use our entire risk analysis, legal, technological and commercial infrastructure for distribution with Station or, if you prefer, just raise tokens by investing in your operations or RWA assets. Count on us.