Santander is a Spain-based bank that has submitted a proposal to combine tokenization with the digital REAL, the Brazilian cryptocurrency being considered, to simplify property transaction. Part of the LIFT Challenge, the proposal would focus on simplifying real estate sales and car purchases for Brazilians.
Santander Proposes Tokenization Platform for Assets
Santander, one the biggest banks with global presence, presented a proposal for enhancing the use case for the central bank’s proposed digital currency (CDBC), in Brazil. Santander uses technology from Parfin to both tokenize and manage the exchange of currency (in this instance, the digital real), for property.
It is intended to make it easier for property owners and sellers to transact through this platform. Jayme Chataque is the Executive Superintendent of Open Finance of Santander.
It is believed that tokenization will allow Brazilians to securely and safely transact real estate sales or vehicle purchases through smart contracts.
This proposal forms part of the LIFT Challenge, which is a selection of projects by the Central Bank of Brazil that seeks to identify suitable uses cases for digital real. It is scheduled to be launched in 2024.
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Santander, however, isn’t the only institution taking part in the LIFT challenge. The other eight selected projects had the goal of exploring the possibility of running multiple proposals via the digital real platform.
Similar solutions are being proposed by other institutions, such as Mercado, a well-known exchange. Visa do Brazil participates in a proposal for a decentralized financing protocol to offer small- and medium businesses finance using the digital real. A proposal has been made to allow offline transactions using the CBDC. This will enable buyers and sellers alike to make their purchases without having access online.
Santander is also open to adding cryptocurrency services to its service offerings. It announced that customers would soon be able to trade cryptocurrency in Brazil, as it did so in June. Santander announced in March that it had partnered with Agrotoken (an agricultural commodity tokenization firm) to launch a pilot program for loans backed from these tokens in Argentina.
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