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Investment funds and tokenization: get to know this relationship!

Fundos de investimento e tokenização: conheça essa relação

Investment funds and tokenization: get to know this relationship!

There is one investment product that has been in continuous growth for a few years now, because it can cater to various investor profiles with the variety of assets and where tokenization comes in to boost its attractiveness: investment funds.

This financial asset is becoming the favorite of those who seek diversification without having to analyze the movements of the weather – the funds are managed by professionals and experienced companies – and also want simplicity in managing results.

Another important aspect is the universalization of funds, reducing entry requirements and thereby including those with little capital to start with.

The tokenization of funds, in turn, comes to further democratize investment and add a number of important advantages for investors and fund managers.

How can you benefit from this union of tokens and funds?

BLOCKBR, a web 3.0 native company, shows how investment funds work and that relationship of good earnings with security!


Funds are, in practice, a form of investment in condominiums of people and/or companies. The fund raises financial contributions from investors and invests in the financial assets that are defined in the fund’s scope.

The current market goes far beyond the stock functions or the fixed income funds – the best known models – and covers other assets – the basic operation is the same, what differs are the management strategies of each one.

Among the well-known funds are:

  • Stock funds;
  • Fixed income securities fund;
  • Real estate fund (residential and commercial properties);
  • Multimarket funds (two or more assets);
  • Quota investment fund (investment in other funds);
  • Index fund (index-linked stocks);
  • Foreign exchange fund (investment in foreign currencies);
  • Provident fund (aiming to form a VGBL or PGBL fund);
  • External debt fund (Brazilian debt securities abroad);
  • Cryptocurrency fund (investment in digital currencies);
  • Fund of credit rights (corporate receivables).


For the basic understanding of an investment fund, we have:

  • The fund’s equity is the sum of all the contributions made by the shareholders;
  • Every fund is managed by a qualified professional in the industry or by a specialized company, and all decisions must follow policies defined in the group;
  • The fund’s performance depends directly on the investment choices made by the manager, which must be in line with the investor profile that seeks the fund and the expectations that the assets provide;
  • Investment funds are regulated by the CVM.

It is not uncommon for people with a conservative or moderate profile to invest in high-risk asset funds. In a group of investors and with expert management, it is natural that a fund is a less risky way to expose capital to risk, rather than investing alone.

This possibility further increases the attractiveness of the funds.


Tokenization is the process in which a good – physical, digital, or financial asset, right, product, or service – is digitally represented by an encrypted file, inserted into a blockchain, and offered to the market under conditions defined by the owner of the good.

In practice, it means converting into tokens the assets of companies and individuals – real estate, receivables, stocks, artwork, agricultural crops, and even business projects, such as a prospecting gold mine.

In a superficial way, the steps below show how tokenization is done.

  • A person or company decides to tokenize an asset and looks for an asset tokenizing company;
  • A technical feasibility study is done with the scope of the offer and the business rules – term, price, restrictions and limits, and form of remuneration;
  • Once the study is approved, the tokenizing company issues the tokens, the smart contract that will electronically govern the entire process of selling the tokens and expected remunerations, and distributes them on its token sales platform or a vehicle defined by the offeror.

From that moment on, a tokenized land, for example. The real estate tokenization market is one of the most promising, because of the fractionation of the asset for sale in low value shares to attract an audience that does not participate in the traditional real estate market.

Therefore, it is a way of generating cash and investing that will grow in the coming years and financial assets are gaining an increasing space.



Fund tokenization works from the same principles used for tokenization of real assets, rights, and digital assets. In this case, the quotas are tokenized and made available on the blockchain defined for the process.

Then they are distributed in the token marketplace. The smart contract will govern the entire project movement – sales, deadlines, and remuneration.

The security token is backed, its value is a reflection of the appreciation of the fund’s share in the market.


This tokenization modality is called security token, because it originates from financial assets regulated by the CVM.

In addition, the markets and the Brazilian government have been moving in the direction of incorporating tokenization into economic reality, through the GT Tokenization Central Bank project and as more banks are accepting tokenization.



The fund shares can be fractioned and offered at much lower values than those practiced in the traditional financial market, which enables more people, especially small and medium investors, to enter the market.


Tokenization allows the fund to offer the tokenized shares directly to the market, without the intermediation of brokerage houses and banks with their attendant costs. This makes the cost of capitalization of the fund lower.


With a lower operational cost, it is possible to pass on the gain to the sale of the quotas, reducing their value and making the offer more attractive. Fracking also allows more people to be eligible to invest and thereby accelerate tokenization liquidity.


Blockchain, combined with smart contract and high-level cryptography, creates a fully secure digital environment for investors and fund managers. Operational management is 100% electronic, which prevents inaccuracies and delays in offering and buying token funds.


Why invest in tokens for an investment fund?

As we saw before, the benefits are many, the process is simple, and the gains are immediate. It all starts in the study that an asset tokenizer, like BLOCKBR, will do together with the client.

The business rules will be defined and will create the smart contract that will operate the fund 100%, with no incorrect data and no delays.

Generating the credibility and security that investors expect!

BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.

The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?

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