Asset tokenization is no longer a market trend; it is a fast-paced reality in the world. Investing or buying tokens is becoming routine, but one question still remains: is it possible to tokenize unregistered assets?
Far from being a Brazilian feature – all countries regulate assets to a greater or lesser extent – asset registration is an important security and transparency measure for the markets.
It sounds counterintuitive, but asset regulation helps drive business; the registration gives the investor or buyer the certainty of a safe transaction from the point of view of fiscal regularity and guarantee of property.
Secure tokenizations are a concern in a market where opportunities are plentiful and the speed of business is one of the key differentiators of tokenization.
Therefore, the question is frequently asked: is it really necessary to register an asset to tokenize it?
BLOCKBR, a native web 3.0 company, will explain how regulation works and its impact on token transactions!
WHAT IS THE ASSET REGISTRATION?
The registration of assets is the process through which certain information on assets is publicized so that future transactions are carried out in a transparent manner, guaranteeing the right of ownership and the security of operations.
In Brazil, there are several categories of assets that must be legally registered in accordance with current legislation, the sector of the economy and the existence of specific regulatory bodies.
See some of them.
REAL ESTATE PROPERTY
A well-known example is the registration of real estate – land, buildings, houses and other properties – in bodies such as the real estate registry office, to publicize ownership, tax situation, rights and duties over the property.
Real Estate Tokenization and the Decentralization of Notary Offices!
BUSINESS PROPERTY AND COMPANIES
They require legal registration with the responsible government bodies, such as boards of trade, to establish legal personality and obtain authorization to operate.
MARKETABLE SECURITIES
Shares, investment funds and other securities must be registered with the CVM before the offers become public. Currently, corporate receivables have become the center of a discussion that they should also be regulated as securities.
INDUSTRIAL PROPERTY
Some tangible assets used in industrial production may require registration with authorities such as the INPI to guarantee their ownership and place them under trade secret protection.
VEHICLES
This is another real asset that must be registered with the control bodies – traffic departments and maritime authorities – with the same purposes existing for real estate assets.
INTELLECTUAL PROPERTY
This is an intangible asset that can be tokenized, but patents, trademarks, copyrights and other forms of intellectual property must be registered with specific bodies.
IS IT POSSIBLE TO TOKENIZE UNREGISTERED ASSETS?
Unable to tokenize unregistered assets.
In many jurisdictions, the tokenization of unregistered assets can be considered illegal or subject to restrictions, as in practice the lack of registration means that the assets lack the legal transparency that preserves the rights of those who invest in or purchase them.
Tokenization is designed to enable more agile and simpler negotiations, such as the absence of intermediaries and compliance with the conditions agreed upon through the smart contract, which is 100% electronic.
Therefore, the asset must be legally cleared to be traded, whether in whole or in part – one of the great advantages of tokenizing.
The regulation aims to protect investors and ensure the transparency and integrity of markets and also favors the supply of tokens; with the asset registered, investors feel more secure.
Therefore, it is a way to give tokenization more credibility.
Do you have questions about the regularity of the asset you want to tokenize? The consultancy of an experienced asset tokenizer like BLOCKBR will guide you on the conditions during the tokenization feasibility study!
IS YOUR ASSET REGISTERED? SEE THE STEPS TO TOKENIZE!
TOKEN STRUCTURE
- Validate the legal conditions of the asset, certifying that it is enabled to be tokenized and offers the necessary security to investors or buyers;
- Create the physical contract that celebrates the rights and duties of the token issuer (who owns the asset) and the tokenizer;
- Choose the blockchain to host the token offering;
- Open the Escrow account (the escrow account for receiving the amounts).
TOKEN ISSUE
- Create and configure the token (or tokens) for use on the chosen blockchain.
- Create the smart contract.
TOKEN DISTRIBUTION
- Make the tokens available on the tokenizer’s sales platform.
TOKENIZATION GOVERNANCE
- Manage transactions with tokens and remuneration through the smart contract.
GET TO KNOW BLOCKBR’S TOKENIZATION API FOR CROWDFUNDING!
According to CVM regulations, operations involving tokens of receivables must be carried out as securities, under the control of the body or, as an option, be offered on the market through crowdfunding programs.
The APIs (application programming interfaces) used in these programs may vary depending on the platforms and services involved. Furthermore, each crowdfunding platform may have its own approach to tokenization.
BLOCKBR offers the development and provision of specific APIs for tokenization in crowdfunding, with resources for creating, issuing, transferring and managing tokens.
With this, your company can trade receivables with all the benefits of tokenization on just one platform, streamlining operations and facilitating governance.
Come talk to BLOCKBR and find out more about this service!
Tokenization infrastructure for the financial market: check out BLOCKBR’s performance!
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
BLOCKBR Digital Assets is a fintech native web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the asset tokenization process.
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.
Come tokenize your business and put it on a higher level in the market!
