Santander, a bank based in Spain, presented a project that uses tokenization in tandem with digital real, the proposed Brazilian cryptocurrency, to facilitate asset transactions. . The proposal, part of the LIFT challenge, would focus on simplifying the sale of real estate and automotive assets to Brazilians.
Santander proposes asset tokenization platform
Santander, one of the largest banking institutions with a worldwide presence, has presented a proposal to enhance the use case of the proposed central bank digital currency (CDBC), Real digital currency, in Brazil. Santander is using technology from another company, Parfin, to tokenize ownership of assets in a transaction, while also managing the exchange of currencies, in this case real digital, for property.
The goal of this project is to streamline the trading processes with different asset classes through the platform. To this, Jayme Chataque, CEO of Santander Open Finance, said:
The idea is that, through encryption, Brazilians can securely negotiate the sale of vehicles or real estate through smart contracts, on permissioned blockchain networks.
The proposal is part of the LIFT challenge, a series of projects selected by the Central Bank of Brazil to find suitable use cases for digital reality, which is expected to launch in 2024.
Other Cryptocurrency Projects
Santander is not the only organization in the LIFT challenge, as eight other projects have been selected with the idea of testing the feasibility of running a number of proposals using real digital as a platform.
Other institutions like Mercado Bitcoin, a popular exchange, are proposing similar solutions this year. Visa do Brazil is also joining in with a proposal to use a decentralized finance protocol as a way to finance SMEs using a digital reality. There is even a proposal to introduce offline payments using the mentioned CBDC, allowing buyers and sellers to transact without internet.
Santander is also ready to include crypto services in its service portfolio. The company announced in June that it would be opening its doors to crypto trading customers in the coming months in Brazil. In March, Santander announced that it was partnering with Agrotoken, an agricultural commodity tokenization company, to open a pilot offering loans backed by these agricultural tokens in Argentina.
Comments (No)