MB and Prata Digital announce the structuring of R$1.5 billion in tokens backed by FGTS Payroll Loan securities

Mercado Bitcoin (MB), the largest digital asset platform in Latin America, announces in partnership with Prata Digital, a fintech specializing in personal loans, the structuring of the first Digital Fixed Income token (RFD) backed by FGTS payroll bonds in the form of an anniversary withdrawal. The assets were issued by QI Tech, a financial services infrastructure fintech. The operation totals R$50 million and its sale was divided into tranches.

The expertise of MB Corporate, an area of the MB ecosystem specialized in tokenization, was used to structure the product, while Prata Digital is responsible for credit origination. The profitability of the token-holders will be associated with the anticipation of the FGTS anniversary withdrawal. The asset thus revolutionizes the universe of investments based on tokenization: in the traditional market, only large banks or FIDC managers have access to these investments. Now, the reach is expanding to retail.

QI Tech acted as the CCB banker for Prata Digital's end customers. It is responsible for granting credit, given its SCD (Sociedade de Crédito Direto) license, to end customers who wish to advance their accumulated FGTS funds. The company recently received an A+(bra) rating from Fitch, as well as becoming the first Brazilian unicorn of 2024.

Among the product's features are a yield of CDI + 1.5% and a term of 77 months. The token can be purchased from R$ 100.00. As it is included in the RFD modality, the potential return is over 14% per year. It's worth noting that the FGTS is a group of assets that has already moved more than R$1 trillion in funds in six years and five months.

"In a very short space of time, we have launched an unprecedented product, which allows retail investors to participate in the receivables of consigned birthday drafts," says Reinaldo Rabelo, CEO of MB.

"MB is increasingly consolidating itself as a complementary player to other credit structurers. While the market is more accustomed to looking at corporate debt, MB Corporate has specialized in recent years in offering individual clients, or 'flesh and blood' as we like to joke here, structured and pulverized credits with a very advantageous risk x return profile. These products are usually in the portfolio of bank treasuries or FIDCs, with little access for retailers and less attractive conditions than ours," adds Alexandre Reda, head of structuring and products at MB Corporate.

Prata Digital is one of the main originators of FGTS credit in Brazil and, in 2020, acted as one of the pioneers in consigned birthday withdrawals, expanding the usability of the Guarantee Fund. The company is currently the leader in origination in this modality, with a volume of R$1.2 billion, a total considered a record in the market.

"When we look at the percentages of use of the birthday loot, more than 60% of the advance payments were passed on to financial institutions. Working together with MB has allowed us to democratize this market through Digital Fixed Income, in order to align profitability and security for investors, as well as portfolio diversification. And this is just the beginning," says Eduardo Mauro Prates, CEO of Prata Digital.

The structuring of the asset was carried out in just 45 days, a process that without the use of Web3 could take up to four months. The operation was completed on Saturday (August 17), emphasizing the efficiency and agility that the use of blockchain technology, decentralized and operating 24/7, brings to the market.

Bitcoin market and B2B tokenization
The partnership with Prata Digital is part of MB's strategy to expand its B2B presence through the tokenization of corporate assets, in order to facilitate access to the capital market.

To occupy segments "underserved" by the Brazilian private credit market, especially for transactions of up to R$ 100 million, MB has a strategic approach using blockchain technology.

Making the operation more efficient and economical, tokenization allows MB to reduce fundraising time by up to three times when compared to the traditional market.