Alternatively, investors may opt for the tokenized version of these traditional titles. Tokenized assets are digital twins of traditional titles that exist on the blockchain, offering several advantages:

Digital Twin

The tokenized asset mirrors the traditional credit asset but benefits from blockchain technology, providing enhanced transparency, security, and transferability.

Custody Flexibility

Investors can hold these assets without the need for local bank accounts, making it an attractive option for foreign investors.

Counterparty Risk Mitigation

Thanks to the inherent properties of blockchain, the Delivery versus Payment (DvP) mechanism is native, which eliminates counterparty risk—an added layer of security for the investor.

While this may still seem like an unconventional option today, BRX Finance believes that, as the adoption of digital currency progresses, tokenized securities will become the standard for all financial instruments.