FAQ

What is tokenization?

Tokenization is the process of converting rights to a real asset or other data into a digital token that can be traded on a blockchain platform. These tokens represent ownership or rights to the underlying asset and can be bought, sold, or traded.

What types of assets can be tokenized?

Virtually any type of asset can be tokenized, including real estate, artworks, receivables, court-ordered payments (precatórios), and even shares in crowdfunding projects.

How does asset tokenization benefit investors?

Tokenization offers liquidity to traditionally illiquid assets, divisibility, greater transparency, reduced transaction costs, and simplified access to global markets.

Is tokenization secure?

Yes, tokenization incorporates blockchain technologies, which provide security through encryption and an immutable record of all transactions. However, it is essential that the platform used follows best security practices and complies with relevant regulations.

What is the difference between security tokens and utility tokens?

Security tokens are digital investments that represent ownership of a real asset or rights to the revenue streams of a business. Utility tokens, on the other hand, provide access to a specific product or service within a platform and do not confer ownership rights.

What are the legal requirements to tokenize an asset?

Requirements vary depending on the jurisdiction but generally include compliance with securities regulations, background checks (KYC/AML), and obtaining all necessary licenses related to the underlying asset.

How can I start investing in tokens?

To start, you need to create an account on a reputable tokenization platform, complete the KYC/AML verification process, and then deposit funds into your account to begin purchasing tokens.

What is a smart contract and how is it related to tokenization?

A smart contract is a programmable and self-executing contract that operates on the blockchain. In tokenization, smart contracts are used to issue tokens and automatically manage the rules and transactions associated with those tokens without the need for intermediaries.

What are the advantages of using smart contracts in token issuance compared to the traditional financial system?

Smart contracts automate and ensure the execution of contract conditions without the need for intermediaries, such as banks or lawyers. This significantly reduces operational and transaction costs, minimizes human errors, and increases transaction speed. In the traditional financial system, similar processes would require much more time and resources to complete, and are subject to delays and human discrepancies.

What is the difference between investing in real estate tokens and buying real estate traditionally?

Investing in real estate tokens offers several advantages compared to traditional buying. Tokens allow for the divisibility of investments, meaning you can invest small amounts in multiple properties rather than buying a single whole property. Additionally, tokenization facilitates the liquidity of real estate investments, enabling the buying and selling of property fractions quickly and usually with lower transaction costs, leveraging blockchain efficiency.

Why use tokenization to diversify investments instead of traditional methods?

Tokenization provides access to a broader range of assets, many of which may not be accessible through traditional investment channels. For example, individual investors can access large-scale projects, such as infrastructure financing or exclusive investment funds, through small token fractions. Furthermore, the nature of blockchain provides greater transparency and traceability of transactions, enhancing investor security and confidence.

What is the impact of regulation on asset tokenization compared to the traditional financial market?

Asset tokenization faces an evolving regulatory environment that may be more complex than the traditional financial market due to new technology and global reach. Regulators in different jurisdictions are still developing legal frameworks that specifically address digital tokens. This can pose both a challenge and an opportunity; a challenge due to uncertainty and frequent regulatory changes, and an opportunity to shape and influence regulatory policies that benefit innovation and growth in the sector.