The maturing Fiagros market is an asset that has changed the agribusiness landscape. Even though there have been recent requests for judicial recovery which have led to defaults in certain sector funds, the market in question is still growing. Negotiations exceeded R$1.5 billion in the first three months of 2024, which represents an increase of 26.1% compared to the same period last year. The significant growth has attracted a good volume of investors compared to other years, which has highlighted the interest in the area. However, this factor raises questions among shareholders about the safety of investing in the maturing Fiagros market. Especially since some of the sector’s producer managers recognize the setbacks caused by climatic events directly linked to El Niño, which were responsible for impacting the harvest between 2023 and 2024. However, although large productions have been affected, producers still point out that the crisis is not affecting all sectors of the market in question. Therefore, understanding and keeping up to date with the maturing of the Fiagros market is essential.

An Analysis of the Maturation of the Flour Market

Friagros is an acronym for Fundo de Investimentos nas Cadeias Produtivas Agroindustriais. This asset works in a similar way to real estate funds, i.e. the assets are divided into quotas, traded on the B3 secondary market. In general, they operate especially in the purchase and sale of Agribusiness Receivables Certificates (CRAs). In this context, CRAs are debt securities issued by economic agents directly involved in the agribusiness market, which can include anything from producers to input manufacturers, normally used to finance production, where payment depends on the harvest. An in-depth analysis of the maturity of the Fiagros market shows the need for a highly careful selection of investments. In this sense, it is essential to prioritize companies that are recognized in the market in order to mitigate imminent risks in the agribusiness scenario. For this, you can rely on an investment advisor.

Impact of Fiagros on the Agricultural Sector

The impact of Fiagros on the agricultural sector has proved to be a highly innovative tool. This is because it achieved a significant increase in investor numbers in 2024. This growth demonstrates investor confidence in the return potential of the maturing Fiagros market, as well as the attractiveness of the agricultural sector. In addition, the IBGE (Brazilian Institute of Geography and Statistics) has recorded growth in agriculture of 15.1% in 2023. In view of this, the Fiagros play a fundamental role in the growth of agri-businesses by attracting investors.

Trends and innovations brought about by tokenization

Tokenization is a feature that has established itself as a trend that makes it possible to represent digital assets. Previously known and popular among technology professionals, it is now something that has taken off in the investment sector and promises to revolutionize the way financial assets are handled. Its rapid expansion is transforming the investment landscape, including the maturation of the fiat market, and providing access to investments that were previously inaccessible. This allows for the tokenization of assets, as well as an increase in the number of portfolios and, as a result, greater opportunities. The resource also offers the possibility of fragmenting intangible assets into different parts. It is therefore the ideal tool in different investment scenarios, which in general have brought innovations including:

Different types of token

There are different types of token and each one is classified into specific categories that can vary depending on how their functionalities are used. Currently you can count on tokens that include:

• Security tokens: assets that can be traded, which can include bonds, debts and guarantees. These provide significant returns for investors through interest rates, dividends, shares in company profits;
• Payment tokens: feature aimed at payments that act as cryptocurrencies. These can include Ethereum, stablecoins, Bitcoins and DREX;
• Utility tokens: assets that influence the price reduction of certain products, including access keys and others. They also give power to those who hold them by allowing them to participate in project decisions;
• Equity tokens: these stand out because they are registered on the blockchain. Whoever owns this type of blockchain and token has the power to vote on important company decisions. These are known as alternative investments, which means that their value can fluctuate according to their specialties;
• NFT (non-fungible tokens): hold records that can be virtual or physical. This is a digital asset that cannot be replaced by another without losing value. It can hold links, images, text and files.

It is important to understand the characteristics of each of these tokens in order to choose the most recommended alternative for each situation. In this sense, it is also important to understand tokenization in agribusiness, as well as the maturity of the fiat market.

Affordable investments

The token allows the fragmentation of an asset during digitization, which allows others to buy small parts of the asset and profit from its appreciation. However, before choosing to invest through tokens, it is essential to be aware of the disadvantages of doing so. By adopting tokens offered by VASPs, the investment possibilities increase significantly and with it, the profits are also higher. In this context, considering the resource is a possibility that can expand investment opportunities.

Greater security

Another important point is the security that tokenization provides. This is because the resource safely protects all the information contained therein in the event of non-compliance by one of the parties or cyber attacks. Transactions are carried out directly through the blockchain, which gets its name from the format in which the files are stored. Although each piece of information is stored separately, each one is independent, improving the level of security. For a hacker to be able to break in and obtain confidential information, they would have to overcome the blockchain’s defenses.

Access to a diversified market

When they decide to invest in tokens, asset holders can reach a wider number of investors, ranging from national to international, large and small. Therefore, tokenization is something that should be considered, as it can open up a range of opportunities, as well as being a safer way of storing so-called digital assets.

Portfolio diversification

Another innovation of the resource includes the possibility of diversifying the portfolio, since tokenization makes it possible for investors to add various assets to the portfolio. This contributes directly to reducing risks. However, it is worth noting that tokenization can involve some risks such as volatility, regulation and liquidity. However, by weighing up the pros and cons of tokenization and understanding its importance for making investments, which can include the return on savings and others, it will be possible to make more informed choices. When creating a token or creating an account, you can count on BLOCKBR. All you have to do is go to the website and add some personal information. In addition, you can count on a whitelabel tokenization platform, where you can offer your assets securely. If you have any questions, please contact us via chat or email: [email protected]. The Fiagros market maturation consists of an asset that works similarly to real estate funds and has become a highly innovative tool for the agricultural sector. Considering it could be an unmissable opportunity to broaden your horizons. BLOCKBR is a fintech specialized in building infrastructure that allows a simplified migration to tokenization, meeting the needs of a highly regulated environment. Our main mission is to develop autonomy for the capital market so that it can move, grow and potentially access digital assets. We develop legal and technological solutions that create opportunities and simplify the way in which financial services will operate, from the structuring and new roles of the agents involved to the management and supply of these assets, generating efficiency, lower costs and greater speed of liquidity. We take care of the entire technological infrastructure for tokenization and regulation, simplifying your life so that you can take care of your customer relationship.