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Santander Proposes Project To Tokenize And Trade Real Estate With Brazilian CBDC – Bitcoin News
Santander, the Spain-based bank, has presented a project to use tokenization in tandem with the digital reality, the proposed Brazilian cryptocurrency, to facilitate real estate transactions. The proposal, part of the LIFT challenge, will be focused on facilitating the sale of real estate and cars for the Brazilian population.
Santander proposes tokenization platform for assets
Santander, one of the largest banking institutions with a worldwide presence, has presented a proposal to improve the use of the proposed Central Bank Digital Currency (CDBC), the digital real, in Brazil. Santander uses technology that comes from another company, Parfin, to symbolize the property rights of the assets in a transaction, while managing the exchange of the currency, in this case the digital real, for the property.
The aim of this project is to streamline the processes for dealing with different types of property through the platform. Regarding this, Jayme Chataque, Executive Superintendent of Open Finance in Santander, stated:
The idea is that, through tokenization, Brazilians can safely 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 the digital reality, which is expected to launch in 2024.
More crypto projects
Santander is not the only institution that is part of the LIFT challenge, as other eight projects were selected with the idea of testing the feasibility of running several proposals using digital reality as a platform.
Other institutions such as Mercado Bitcoin, a popular exchange, are proposing similar solutions this year. Visa do Brazil also participates with a proposal to use a decentralized financial protocol as a way to offer to finance small and medium enterprises using the digital real. There is even a proposal to introduce offline payments using said CBDC, allowing buyers and sellers to transact without the internet.
Santander has also been open to including cryptocurrency services in its service portfolio. The company announced in June that it would open the door for customers to trade crypto in the coming months in Brazil. In March, Santander informed that it is partnering with Agrotoken, an agricultural commodity tokenization company, to open a pilot to offer loans backed by these agricultural tokens in Argentina.
What do you think of Santander’s digital real-focused asset tokenization and trading project? Tell us in the comments section below.
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