Bradesco Launches Tokenized Credit Notes, Paving Way for $16 Trillion Blockchain Opportunity
• Bradesco, one of the largest banks in Brazil, has entered the cryptocurrency world by issuing its first tokenized credit notes.
• The operation was carried out in partnership with Bolsa OTC, tokenizing almost $2 million in bank credit notes.
• Asset tokenization, the process of representing real-world assets in blockchains, is predicted to become a $16 trillion business opportunity by 2030.
Bradesco, one of the largest banks in Brazil and the third biggest in all of Latam, has made a major move by entering the cryptocurrency world. On Jan. 13, 2023, the bank announced that it had issued its first tokenized credit notes, worth almost $2 million, as part of a pilot program to test the functionality of blockchain technologies. The operation was carried out in partnership with Bolsa OTC and using a regulatory sandbox that allows financial institutions to make this kind of test using new technologies.
Edson Moreto, executive director of Bradesco, commented on the significance of the tokenization, stating: “We continue to work and test the benefits of blockchain technology using its innovation ecosystem, Inovabra, so that new operations are made available to our customers.”
Asset tokenization, the process of representing real-world assets in blockchains, is considered by some analysts the next step in market tech. A report issued in December by BCG and ADDX predicted that asset tokenization will become a $16 trillion business opportunity by 2030. Bradesco is the second bank in Brazil that is currently experimenting with the technology, joining Santander, who launched a tokenized corporate bond in November 2020.
The move is seen as a major step forward for the cryptocurrency and blockchain space in Brazil. In December 2020, Brazil released a set of guidelines for crypto and blockchain businesses in the country, setting the framework for a more regulated environment. The tokenized credit notes are the first major operation of this kind, which could potentially open the door for other financial institutions in the country to follow suit.
The success of the pilot program could pave the way for a more widespread adoption of blockchain and cryptocurrency technologies in Brazil, transforming the financial sector and allowing for more efficient and secure transactions. As other countries in the region continue to show an interest in these technologies, Brazil’s move could set the tone for a new era of digital asset management.