Fixed Income Tokens: How Digital Assets Immune to the “Crypto Winter” Work

Crypto assets are famous for their volatility, but not all are like that. In the midst of a “winter” that has lasted at least nine months in this market, a new type of digital asset is gaining traction that has properties more similar to those of fixed income products – instead of high gains, they focus on a lower return. , but guaranteed at pre-fixed rates.

The so-called fixed-income tokens – or fixed-income cryptos – are assets issued on blockchain and which are backed by investments normally traded in the traditional financial market. They have been attracting consumers by taking to retail products normally available only to qualified investors, such as Fundos de Investimento em Direitos Creditórios (FIDC) – and at a low price.

There are tokens for receivables, precatories, consortia and even energy. Through the technology that emerged with Bitcoin (BTC), companies in the sector eliminate intermediaries and reduce issuance costs, resulting in greater funding for the issuer, as well as more attractive rates for the buyer.

“We take a credit right from a FIDC and tokenize it. A security worth BRL 100,000, for example, is sold for BRL 90,000 and whoever bought a fraction of that security through the token, when it is paid BRL 100,000, receives proportionally to the amount of tokens. [adquirida]. He would then have a 10% profit”, explains Daniel Coquieri, CEO of Liqi, a startup specializing in assets in this category, in an interview with Cripto+ (see the full player above).

This, however, is just one example, as such tokens can have an annualized return of 17% to 19% – or about 1.5% per month. As they work in smart contracts, the assets have payment rules recorded on the blockchain, and the information can be consulted publicly – including the value over time, with the interest earning updated in real time.

In this segment, it is common to see, for example, the trading of tokens that represent the share of a rental contract of a particular company. Those who signed the contract anticipate the value with investors, who, in turn, can participate in a fundraising normally unavailable to ordinary retail users, earning an attractive premium for the operation.

Pros and cons

The positives of the fixed income token go beyond the higher gain compared to conventional fixed income. One of them is its affordability, as it is possible to start with little. MB Assets, from the 2TM holding, allows investment from R$100. At Liqi, it is possible to buy tokens from R$25.

On the other hand, there are some disadvantages that the investor needs to take into account. The first is that fixed income tokens are also not protected by the Credit Guarantee Fund (FGC).

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In addition, the secondary market for tokens of this type is still scarce or non-existent, which practically forces the investor to keep the asset until the maturity of the digital security.

“That’s why we’ve been issuing short-term tokens, 40, 60, 90 days,” says Coquieri. However, for the executive of Liqi, a startup invested by Kinea Ventures, from Itaú, it is a matter of time before the market matures and creates secondary markets for tokens like these.

The Securities and Exchange Commission is already testing such projects within the regulatory sandbox, a controlled environment with its own rules. The first tokenization company recognized by the CVM, QR Vórtx Tokenizadora, has already issued FIDC tokens on a regular basis.

Companies like Liqi and MB Tokens operate in a gray area and, therefore, require investors to be more careful when choosing assets – such as, for example, doing their own research about the company behind the issuance.

“It is not an operation guaranteed by the FGC, so it is important for investors to understand the risk they are buying. In the end, it is a credit risk, of who will pay the token”, explains the CEO of Liqi.

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