Tokenization reduces financial transaction costs.

The rise of tokenization is redefining the future of finance. The growth of blockchain technology, combined with a more favorable regulatory environment, is driving this model, which is already being adopted by major financial institutions. According to the World Economic Forum, by 2027, approximately 10% of the world’s GDP could be stored on blockchains, with new technologies further accelerating the platform's growth. The advancement of technologies like artificial intelligence (AI) and machine learning promises to further transform the financial sector by improving risk assessment, operational agility, and transaction efficiency.

Tiago Piassum, CEO of Rivool Finance, predicts exponential growth in tokenization within the financial market.

Tokenization brings new possibilities for asset management and trading in the financial sector. The process allows physical and financial assets to be converted into digital tokens, digitally represented on a blockchain. Smart contracts are programmed to automate transactions and ensure that all agreed-upon conditions are met, bringing transparency and efficiency to the process. These contracts automatically execute predefined conditions, such as property transfers and payments, once the specified criteria are met. After issuance, tokens can be freely traded on the secondary market, with the blockchain ensuring that all transactions are recorded immutably.

According to a report by Boston Consulting Group (BCG), tokenization could unlock up to $16 trillion in illiquid assets by 2030. It is expected that more financial institutions and investment platforms will adopt this technology, expanding access to financing opportunities and broadening the market. Tokenization not only redefines assets and operations in the financial universe but also shapes a new future for the global economy, where agility, diversity, and innovation are the true currencies of value.

In the realm of private credit, tokenization facilitates the securitization of receivables, enabling small and medium-sized businesses to access capital more efficiently, reducing reliance on traditional financial intermediaries, and easing access to credit. Additionally, it offers investors new diversification opportunities, with access to credit products previously restricted to large institutions. Alongside the tokenization process, the use of smart contracts is expanding, offering automated solutions and reducing operational costs.

The tokenization of Real-World Assets (RWAs) is gaining prominence, particularly due to the possibility of fractional ownership and easier access to investment in traditionally inaccessible assets. A practical example of this transformation recently occurred with the first acquisition of a real estate asset in Brazil using a digital currency, the D¥N, developed by Dynasty Global AG. The transaction, which involved the payment of 3,482 D¥N for a 19.3% fraction of a commercial office building in Porto Alegre, was completed in minutes through the netspaces platform. This transaction highlights the efficiency of the process, which is conducted in real-time, allowing the buyer to receive ownership immediately after payment. The new solutions for managing real-world assets and private credit present numerous opportunities, regardless of the size of the enterprise.

Companies and investors that adopt this technology will be at the forefront of the next major financial revolution. As tokenization becomes a common practice, it is expected not only to impact the financial market but also to promote a new era of innovation, shaping a future where the global economy operates with less bureaucracy and greater efficiency.