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Itaú Unibanco Unveils Tokenization Product for Its Customers

Itaú Unibanco Unveils Tokenization Product for Its Customers

The largest private bank in Brazil, Itaú Unibanco is set to unveil an asset tokenization platform. The Blockchain platform will allow customers to tokenize financial instruments such as collateral assets. The new banking product will be available for retail customers by the end of the year. The tokenization product will promote the integration of digital assets in the largest economy in Latin America.

Itaú Unibanco is the largest bank in Brazil will over 4,000 branches spread across the vast country. Founded in 2008 following the merger of Banco Itaú and Unibanco. On a global scale, it is one of the 20 most capitalized banks worldwide.

About the Blockchain Platform

In an interview with InfoMoney, a local news outlet, Vanessa Fernandes, the head of the tokenization unit, reveals that the platform will be the first of its kind in the nation of 200 million people. The Blockchain network will support digital asset issuance, distribution, and custody.

Additionally, the system will offer token-as-a-service support. Fernandes also revealed that the bank would implement Crypto custody services in the future. The latter service is ideal for Crypto hodlers anticipating a Crypto rally.

The head of the units of the digital asset adds that the developer will sync the new system to mainstream banking products and services. This will ensure a seamless flow of Crypto between traditional financial instruments and the Crypto market.

The Trials Are Underway

The test is internal, although some external customers are taking part in the trial phase. The participants have been assigned the anticipated receivables for testing purposes.

The protocol of the new infrastructure is the open-source Ethereum client known as Hyperledger Besu. The design can support critical features such as smart contracts and proof-of-stake authentication.

Blockchain developers prefer Ethereum protocols to design Blockchain tokenization programs. One of the latest adopters is the Central Bank of Korea. The lender of last resort is using the Ethereum-based Klayton permissioned blockchain to build an infrastructure for its CBDC.

Adoption of Crypto in Brazil is Rising

The Banco Central do Brasil (BCB) is developing a digital real as it seeks to roll out its own CBDC. Itaú Unibanco is one of the nine participating banks in the program.

Other banks that have embraced Blockchain tokenization and Crypto solutions in the country include Caixa Economica Federal, Bradesco, BTG Pactual, and Santander Bank. The BTG has a Crypto trading platform that enables its customers to participate in Crypto market activities. The enthusiasm for Crypto is more vigorous in the low-tier banks, and the country is becoming a Crypto haven.

The Crypto winter prompts Brazilian regulators to institute regulations to govern the digital asset space. Some proposals include licensing of Crypto Asset Service Providers (CASPs) and taxation of Crypto transactions.

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