Santander, the Spain-based bank, has presented a project to use tokenization in tandem with the digital real, the proposed Brazilian cryptocurrency, in order to facilitate property transactions. The proposal, part of the LIFT challenge, would be focused on simplifying the sale of real estate properties and cars for the Brazilian population.
Santander Proposes Tokenization Platform for Assets
Santander, one of the largest banking institutions with a presence all over the world, has presented a proposal to enhance the use case of the proposed central bank digital currency (CDBC), the digital real, in Brazil. Santander is using technology coming from another company, Parfin, to tokenize the property rights of the assets in a transaction, and at the same time manage the exchange of the currency, in this case, the digital real, for the property.
The objective of this project is to streamline the processes of transacting with different kinds of property through the platform. About this, Jayme Chataque, Executive Superintendent of Open Finance of 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 real, that 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 the digital real as a platform.
Other institutions such as Mercado Bitcoin, a popular exchange, are proposing similar solutions this year. Visa do Brazil is also participating with a proposal to use a decentralized finance protocol as a way of offering to finance small and medium companies using the digital real. There is even a proposal that introduces offline payments using the mentioned CBDC, allowing buyers and sellers to transact with no internet.
Santander has also been open to including cryptocurrency services in its service portfolio. The company announced in June it would be opening the door for customers to trade crypto in the coming months in Brazil. In March, Santander informed it was partnering with Agrotoken, an agricultural commodity tokenization company, to open a pilot for offering loans backed by these agricultural tokens in Argentina.