B3 plans regulated products and infrastructure for cryptoactives. Photo: MBM, Unsplash.
“Follow and adapt.” This is the phrase that the B3 uses to explain its adherence to cryptoactives, which foresees a series of initiatives. Overall, the exchange’s plan is to launch regulated products and develop infrastructure services for unregulated cryptoactives. In addition, it foresees investments in the segment to remain “in the innovation ecosystem”.
Technology, business models and regulation are the formula for this movement. Thus, it will follow the few exchanges in the world that follow the same path, such as the Chicago (CME).
By regulated digital asset products, we understand cryptocurrency futures contracts, which the institution is already studying, registration of over-the-counter derivatives and COE (Structured Transaction Certificate). The latter combines fixed income, variable income and access to these products abroad. ItaĂş, for example, has already offered a COE that included shares in Coinbase, the largest cryptocurrency exchange in the United States (USA).
In the part of infrastructure for cryptoactives, crypto as a service, custody and Delivery versus payment (DVP), which is payment in real time (atomic) are foreseen. In addition, it provides access to liquidity, capital efficiency gains and asset tokenization. The information is in the document “Core Business Solid | Expanding Frontiers” for B3 Day 2021, which took place last Friday (10).
B3 provides custody services for cryptoactives
B3 details the services as follows:
- Asset tokenization – enhancing distribution and liquidity,
- Trading and access to liquidity centers – mitigating the complexities of accessing a fragmented, global and 24×7 market
- Digital asset custody – provide reliable custody (finality of blockchain transactions),
- Over-the-counter facilitation – provide more security and efficiency in the movement and DVP of digital assets,
- Capital efficiency gains – mitigate the pre-funded nature of operations and
- Crypto as a service – make it easier for customers to explore the crypto market with low friction.
One of the priorities for 2022 is the Digital Reinsurance Chamber, that is, the platform that B3 is the reinsurer IRB Brasil announced in 2020 and planned to put into operation this year. It should be an integrated platform for recording and reconciling reinsurance contracts. The project’s network is the Rope of R3.
And there’s more. B3 provides a platform for issuing
convertible debt (POC). This project is with Globacap, of blockchain solutions for the stock market, and Ribon, a Brazilian company, which was born as a platform for social impact projects.
Regarding investments in innovation, the partners are R3 and Redpoint events. The latter invests, for example, in companies like Nubank and Netflix. However, B3 is already making investments in different segments.
Today, in crypto, B3 has 5 index funds (ETFs), of which three are from Hashdex and two from QR Asset. These funds had an average daily trading volume (ADTV) of R$ 120 million. In the document, B3 mentions that the trading volume of cryptocurrencies in Brazil was BRL 9.7 billion last November, according to TheBlock.
In early November, B3 CEO Gilberto Finkelsztain criticized cryptocurrency exchanges. He stated that they are brokers because “they have absolutely no regulation. The operating cost is much higher and investor protection is much lower,” he said in an interview with the portal Your money.