When someone talks about tokenization, soon we think about creating tokens, but the concept goes beyond the simple creation of digital assets. It is a profound transformation in the way assets are represented and traded, opening new possibilities for liquidity and accessibility in the financial market. Thus, creating tokens is just the simplest product of tokenization, since all the transformation it promotes comes long before and is much more important than the digital asset itself.
Tokenization, in essence, it is the representation and conversion of rights over an asset into a digital token on the blockchain. These tokens can represent any asset, from areas for incorporation, credit with collateral as guarantees, equity and commodities. The great innovation of tokenization lies in its ability to decentralize supply and bring liquidity in ways that were previously not possible without the intermediation of traditional financial institutions such as banks and brokers.
While some market players see tokenization as a way to provide liquidity by decentralizing supply or even using the opportunity to serve banks, others see the opportunity to take on new roles in the market. An example of this is an office of independent agents that aspires to be a brokerage or a structurer. Traditionally, becoming a broker is an expensive and exhausting process, that involves high hiring, risk and operational analyses, in addition to heavy taxes. Becoming a structurer brings with it a responsibility that was previously left only to those with the know-how.
With the tokenization infrastructure, these offices can become token issuers, acting in a similar and complete manner, but in a much simpler and more economical way. This eliminates the need to become traditional brokers, allowing them to sit at the table with the borrower and directly offer investment products and financial services.
The tokenization infrastructure allows market agents to perform functions that were previously beyond their reach due to regulatory and cost barriers. By becoming token issuers, they can create an environment where asset trading becomes more accessible and scalable. This process involves paving so that the management and the token serve only as a vehicle for the transaction, substituting or complementing traditional methods of financing and investment.
Thus, tokenization does for autonomous agents what theBank as a Service(BaaS) created for fintechs and small to medium-sized companies: it opens up a range of opportunities for them to leverage their base, expand your services and business simply, fast, cheap and with the security of a robust technological infrastructure, ready to climb.
Tokenization attracts new players to the market, providing autonomy and decentralization. Companies that previously only consumed the financial products they produced, now, can become active participants in the issuance and offering of these products. This creates a more dynamic and competitive ecosystem, where innovation is encouraged and entry barriers are lowered.
For example, a company that previously relied on brokers to distribute its credit products, now, you can use tokens to offer them directly to the market. This not only reduces costs, but also increases the efficiency and transparency of transactions. Tokenization allows these companies to become market makers, creating and managing your own financial products with greater control and flexibility.
Tokenization and liquidity
Although liquidity is one of the great promises of tokenization, she is not the only benefit. The possibility of decentralizing the supply of assets and democratizing access to investments is equally important. Tokens can be easily traded on digital platforms, increasing the liquidity of assets that were previously difficult to trade.
Furthermore, tokenization offers an operational solution even before bringing liquidity. Tokens can be used to manage assets, track property and execute contracts automatically, reducing the need for intermediaries and increasing the efficiency of operations.
Tokenization is changing the financial landscape by allowing new players to enter the market and occupy previously inaccessible positions. As more players adopt this technology, we will see a continuous transformation and an increase in opportunities for all market participants.
