Brazil’s private bank embraces crypto; launches a tokenized bank credit note 

The second largest private bank in Brazil, Bredesco launches its first tokenized bank credit note. The launch was marked by the completion of a total of 10 million Brazilian reals (BRL) transactions equal to $1.95 million. 

By tokenizing a credit note, Bredesco transformed the BRL assets worth 10 million from the traditional financial market into crypto assets on the blockchain.

This move was made under a regulatory sandbox promoted by the Central Bank of Brazil. According to the bank, Bredesco ‘it was the first financial market tokenization operation regulated by that monetary authority”. The project was executed in collaboration with Bolsa OTC Brasil with the bank acting as originator and distributor of the securities.

The Central Bank of Brazil’s regulatory sandbox is an environment that allows authorized groups to test innovative financial or payment projects for a certain time.

Believing that the tokenization occurred at a critical time for the future of the digital market in Brazil, Paulo Oliveira, CEO of Bolsa OTC Brasil, said that “the CCB tokenization occurs at a decisive moment for the development of the digital asset market in the country and in the world”.

Aside from Bredesco, two other Brazilian banks, Santander and Itaú Unibanco have been reported to have also embarked on the Brazilian tokenization market. Santander issued 40 million BRL equal to $7.8 million as part of the Brazilian Central Bank’s sandbox. The note was issued in tokenized bonds to a management company, Indigo.

Also, Itaú Unibanco, Brazil’s largest private bank in July 2022, launched a tokenization platform, Itaú Digital Assets, which “provides crypto custody and token as a service (TaaS) products.”

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