BEE4, a Brazilian fintech company, intends to establish the first local marketplace for tokenized stocks in Latin America. The marketplace will run on the Ethereum blockchain-based Quorum network. Tokenised stocks are digital representations of shares in publicly traded companies like Tesla, Apple, and Meta.
CoinDesk reported on Thursday that BEE4 would like to enable businesses with annual revenues between $1.8 million and $55 million (roughly Rs. 440 crore) to make public offerings of up to $19 million (roughly Rs. 151 crore).
On the Quorum network, the platform will have an open bid book, a trading floor, and auctions service, as well as a buy and sell orders service.
Tokenized stocks are often backed 1:1 to traditional stocks, allowing holders to enjoy the same benefits as owning the underlying asset. These may be purchased using cryptocurrencies or fiat currencies on supported trading platforms.
tokenized stocks are traded 24/7, not unlike traditional financial instruments.
Tokenized assets allow investors to make the same profit as trading classic instruments while also availing different types of securities in terms of debt, revenue sharing, income sharing, and convertible preferred stock.
A few crypto companies, like the FTX exchange, Bittrex exchange, and Mirror Protocol for DeFi, have currently offered stock tokens. While others include TSLA by Tesla, NFLX Netflix, and GOOGL Google, some of the most popular companies have already offered tokenized shares.
Tokenization is the process that allows every asset to be issued as tokens on a network.
The $TIA diamonds that $LCX tokenized are an example.
According to HSBC's research, tokenised markets might be worth $24 trillion by 2027. http://twitter.com/VrCUWPPJZz
After Brazil's only stock exchange, asset tokenization became a topic of discussion; the B3 said last December that it was also looking into opportunities in the fields of asset tokenization, digital asset custody, and crypto-as-a-service (CaaS).
Itau Unibanco, the largest Brazilian private bank, announced its intention to develop an asset traditionalization platform that would assist businesses in converting finance goods into tokens earlier in the year.
With its new corporate division, itau Digital Assets, the bank will also be investigating cryptocurrency custody services for its customers.