BTS: BBChain Token Service | unified tokenization and digital asset management tool

• Grant number: 23/08983-5
• Support Opportunities: Research Grants - Innovative Research in Small Business - PIPE
• Start date: January 01, 2024
• End date: November 30, 2024
• Field of knowledge: Physical Sciences and Mathematics - Computer Science - Computer Systems
• Principal Investigator: Sandro Gonçales Funk
• Grantee: Sandro Gonçales Funk
• Company: Connecting Blocks Consultoria Ltda
• CNAE: Suporte técnico, manutenção e outros serviços em tecnologia da informação
• City: São Paulo
• Pesquisadores principais: Alexandre Alves dos Santos Junior
• Associated scholarship(s): 23/18216-1 - Development and Implementation of Smart Contracts on Blockchain: Construction of APIs, Middleware and Integration of Confidential Computing Techniques for Data Security | part 1., BP.TT; 24/01137-4 - Development and Implementation of Smart Contracts on Blockchain: Construction of APIs, Middleware and Integration of Confidential Computing Techniques for Data Security | part 3., BP.TT

Abstract

Securities tokenization is an emerging field with challenges to be overcome for its wide adoption. This research proposal aims to explore innovative solutions for services that support the lifecycle of the tokenization process of an asset. The goal is to build a Proof of Concept (PoC) that integrates advanced technologies, such as confidential computing, into a single package, allowing companies to tokenize their assets and make them available on marketplaces of their choice while respecting regulations. Thus, we will prove the technological viability of the idea. Our project brings scientific challenges, such as creating a unified tokenization framework, an easy-to-navigate regulatory compliance platform in different countries, a decentralized solution for asset custody, and a decentralized identity management system. As a result, we will develop a unified tokenization and digital asset management solution that makes it easy to tokenize assets across multiple sectors of the economy and navigate complex regulatory landscapes. Market innovation opportunities include increasing investor and business confidence in the tokenized asset ecosystem, establishing a secure and scalable escrow solution for tokenized assets, and improving the privacy and security of personal information in the financial sector. Our proposal for a future product is a B2B SaaS that offers tokenization as a service, allowing companies, especially smaller ones not listed on the stock exchange, to create and manage their financial assets, opening up new economic modalities, providing new financing and investment models, truly democratizing finance. We estimate to start the project at Technology Readiness Level (TRL) 2 and, after the successful development of the PoC, reach TRL 4. This evolution will leverage further product development and improvement, driving it toward market readiness. The project is structured in five phases. We will conduct a literature review, develop the system components, perform tests and validations, implement the PoC in a controlled environment, and create comprehensive documentation. In conclusion, this project will offer a robust and scalable solution for tokenizing financial assets, allowing companies and investors to take advantage of tokenization, such as greater liquidity, transparency, and efficiency, while maintaining compliance with financial and data protection regulations. (AU)