Itaú Joins Brazil Capital-Markets Tokenization Pilot With OpenAssets
- Latin America’s largest private bank, Itaú, will join a Brazilian capital-markets tokenization pilot in partnership with OpenAssets.
- The pilot will use distributed ledger technology (DLT) to test the issuance, trading and settlement of bonds and investment funds.
- The market for real-world asset (RWA) tokenization has more than doubled in a year to $38.3 billion, with US Treasuries accounting for the largest share.
Forecast Trend Report by Period
Itaú, Latin America’s largest private bank, has joined a Brazilian pilot program for capital-markets tokenization.
Cointelegraph reported on August 11 that Itaú will participate in the tokenization pilot led by ANBIMA, the Brazilian Financial and Capital Markets Association, in partnership with digital-asset infrastructure company OpenAssets. The program uses distributed ledger technology, or DLT, to test the issuance, trading and settlement of capital-markets products including bonds and investment funds.
The two companies plan to run a proof of concept for tokenized assets and assess operational, compliance and technical requirements through the partnership. The main instruments being tested are corporate bonds, or debentures, and investment funds. OpenAssets will provide the tokenization infrastructure, while Itaú will evaluate how tokenized assets could work in an institutional investment environment using its capital-markets expertise.
ANBIMA said in April that it selected 20 cases for the pilot from 39 proposals submitted by more than 50 banks, asset managers and technology companies. The tests will be carried out on a permissioned private DLT network in a simulated environment without real financial transactions.
Meanwhile, the market for real-world asset, or RWA, tokens circulating on public blockchains has been expanding rapidly. Data from RWA.xyz shows the market grew to $38.3 billion from about $18.9 billion in August last year, more than doubling in a year. US Treasuries account for the largest share at more than $16 billion.