Tokenization is the uberization of the financial market

Just as Uber revolutionized the transportation industry by challenging the traditional taxi model, tokenization promises to transform the financial sector, offering new opportunities for market participants who, until now, were beholden to traditional systems and operated under restrictions imposed by centralizing institutions, such as banks and brokerage firms. These participants include investment funds, asset managers, investment advisory firms, securitization companies, and a small segment of fintechs.

Especially in Brazil, funds often rely on large banks and brokerage firms for the distribution and administration of their financial products. Beyond the bureaucracy and slow processes, which delay strategic decisions and harm performance, this limits their capacity for innovation and imposes high costs, which are passed on to investors.

Asset managers also face challenges, as they must handle asset custody, fund administration, and regulatory compliance, often through intermediaries who impose fees and restrictions, limiting their flexibility and agility to explore other diversification opportunities.

Furthermore, the increasing regulatory demands from bodies like the Brazilian Securities and Exchange Commission (CVM) and the U.S. Securities and Exchange Commission (SEC) necessitate constant updates and compliance, which can be costly and time-consuming. Moreover, the need to invest in new technologies, such as artificial intelligence, big dataIt is crucial for maintaining competitiveness, requiring not only high implementation costs but also training and retention of qualified talent.

Competition in the sector has also intensified with the increase in the number of asset managers and the ease of access to investment information and tools, making differentiation in the market a constant challenge. Concurrently, investors are becoming increasingly informed and demanding, seeking sustainable and responsible investments, in addition to financial returns. This forces asset managers to adapt their strategies and product offerings.

Another significant challenge is represented by historically low interest rates in many markets, making it difficult to achieve attractive returns on traditional fixed-income investments. To overcome these obstacles and capitalize on opportunities, investment managers must adopt a proactive approach, investing in technology, staying abreast of regulations, and adapting their strategies to meet the evolving demands of investors.

Investment advisory firms, in turn, are slow and have a complex relationship with banks and brokerage houses. While they offer personalized advice to clients, they are often pressured to promote specific products from those with whom they have business agreements. This can create conflicts of interest and limit the advisors' actions.

Securitization companies, which transform illiquid assets into negotiable securities, lack the financial institutions to distribute their solutions and often face barriers to accessing broader markets.

Even fintechs, which emerged promising disruption, ended up integrating with conventional systems to gain scale. This led to the loss of part of their original proposition, making them dependent on the same intermediaries they promised to replace. The FIDC crisis is an example of how this integration can fail, generating results below expectations.

Transformation with tokenization

Many entrepreneurs still seek the easiest path, opting to integrate with the traditional financial market models. However, tokenization offers a new approach, allowing these agents to uberize the sector and gain autonomy.

Thus, investment funds can tokenize their structure in various ways, eliminating steps and reducing costs. Asset managers can expand their portfolio with tokenized assets, ranging from real estate to startups, accessing new Please provide the Portuguese text you would like translated. "Pools" is too vague. I need the context. Do you mean: * **Swimming pools?** * **Pools of water?** * **Pools of money?** * **Pools of data?** * **Something else entirely?** of distribution

Tokenization also enables advisory firms to act as structurers, sitting at the table with the borrower and negotiating like a broker. For securitizers, it simplifies the process of converting illiquid assets into tradable securities, acting as the offering panel itself, increasing clarity and accessibility. This attracts a more diverse group of investors and reduces issuance and administrative costs.

Therefore, just as Uber democratized access to transportation, allowing anyone with a car to become a driver, tokenization creates a foundation for empowering those who were previously reliant on banks and brokerages. It fosters a new financial literacy for investors, making everything much more coherent and transparent. This transformation eliminates so many intermediaries from the structuring of an asset, as well as reducing costs and bureaucracy, and increasing the efficiency and transparency of the financial market.

This paradigm shift expands access to a global investor base and fosters the creation of financial products and services, boosting innovation and competitiveness, and benefiting financial sector companies who can utilize solutions better tailored to their needs.