When someone talks about tokenization, one soon thinks 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 up 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 much earlier and is much more important than the digital asset itself.
Tokenization, in essence, 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 such as collateral, equity and commodities. The great innovation of tokenization lies in its ability to decentralize supply and bring liquidity in ways that were not possible before without the intermediation of traditional financial institutions such as banks and brokerages.
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 play new roles in the market.An example of this is an office of autonomous agents that aspires to be a broker or a structuring agent. Traditionally, becoming a broker is an expensive and exhaustive process, which involves high hires, risk and operational analysis, as well as heavy taxes.
With tokenization infrastructure, these offices can become token issuers, acting similarly and completely, but in a much more simplified and cost-effective 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.
Tokenization infrastructure allows market players to perform functions that were previously out of 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 the way for management and token to serve only as a vehicle for the transaction, replacing or complementing traditional financing and investment methods.
Thus, tokenization does for autonomous agents what the Bank as a Service (BaaS) has made for fintechs and small and medium-sized companies: it creates a range of opportunities so that they can take advantage of their base, expand their services and business in a simple, fast, cheap and with the security of a robust technological infrastructure, ready to scale.
Tokenization attracts new players to the market, providing autonomy and decentralization. Companies that previously only consumed the financial products they produced, can now become active participants in the issuance and supply of these products. This creates a more dynamic and competitive ecosystem, where innovation is stimulated and entry barriers are reduced.
For example, a company that previously relied on brokerages to distribute its credit products can now utilize 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 structurers, creating and managing their own financial products with greater control and flexibility.
Tokenization and liquidity
While liquidity is one of the great promises of tokenization, it is not the only benefit. The possibility of decentralizing the supply of assets and democratizing access to investments is equally important.
Tokens can be used to manage assets, track ownership and execute contracts in an automated manner, 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 embrace this technology, we will see a continuous transformation and an increase in opportunities for all market participants.
