Bradesco, one of the largest banks in Brazil and the third largest in all of Latam, has entered the world of cryptocurrencies by issuing its first tokenized credit notes. The operation, conducted in partnership with Bolsa OTC, tokenized approximately $2 million in bank credit notes, which were also distributed by Bradesco.
Bradesco launched an asset tokenization program
Bradesco, one of the largest banks in Brazil and Latam, has entered the crypto age, being one of the first institutions to use blockchain technology in its Brazilian operations. The bank announced on January 13, 2023 that it had tokenized its first batch of bank credit notes worth almost $2 million as part of a pilot program to test the capabilities of these technologies.
The operation, which Bradesco claims is the first of its kind supervised and approved by the country’s central bank, was performed in partnership with Bolsa OTC using a regulatory sandbox that allows financial institutions to conduct this type of testing using new technology.
Commenting on the significance of this, Edson Moreto, Executive Director of Bradesco,said:
We continue to research and test the benefits of blockchain technology with its innovation ecosystem, Inovabra, so that new operations can be offered to our clients.
Asset Tokenization Business
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Asset tokenization, the blockchain representation of real-world assets, is considered by some analysts to be the next step in market tech. areport released in December by BCG and ADDX34} predicts a $16 trillion business opportunity by 2030, and the technology could become a bargaining trend in financial markets in the future.
Bradesco is the second Brazilian bank currently experimenting with tokenization and tokenized assets. The first was Itaú Unibanco, which conducted a series of tokenization tests in July, issuing assets to bank employees and customers.
At that time, Itau also announced the creation of its own tokenization unit. This unit would focus on providing tokenization services to customers and using a platform built and managed by the bank to tokenize and sell these assets.
According to local sources, more banks will incorporate tokenization as part of their service portfolio. Many of these institutions were hoping that with the recent approval of the Cryptocurrency Act in December, they would have a clear panorama regarding compliance issues for offering these tokenization services.
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