The startup AmFi, which works with traditional digitized financial assets, is taking Brazilian tokenized debt products to foreign investors through the so-called “lending pools”, blockchain structures with pre-standardized smart and legal contracts that enable investments in the digital assets segment.
According to Paulo David, CEO of AmFi, the expectation is to move close to R$500 million this year, with a large part coming from foreign institutional investors, such as family offices, treasuries, and professional asset managers with global reach, among other liquidity “providers”.
These are investors familiar with the products and the associated risk, which gain scale and convenience through blockchain technology.
Among emerging markets, Brazil stands out for its advancement in tokenization, in addition to the popularization of the Pix and the fact that about 80% of financial transactions originate from smartphones, the executive said.
“Technology has been our ally for this evolution. We are already working with some of the most important players in the market.”
“In addition to facilitating access to liquidity, we have reduced the time and costs to access capital,” he said.
David led Biva, the country’s first P2P (person-to-person) lending platform, sold to PagSeguro in 2017.
At the head of AmFi, he now intends to connect professional investors to high-yield opportunities in Brazil, such as trade bills, bank credit bills (CCBs), and judicial assets, such as precatórios.
The products with senior quotas of lower risk have remuneration ranging from CDI + 6% to CDI +8%, which yields up to 22% per year.
The fintech uses a network with Avalanche’s blockchain technology, in which the credit contracts already adhering to the rules in force are digitalized and made available for transaction in an automated way, with an immutable record of information and transactions.
The system lists operation characteristics, interest rates, and maximum concentration per sector.
Investors also have access to guarantee controls and a management tool designed for transactions with a high volume of receivables and information.
“The intelligent contracts are automated, which means that the agreement is obeyed without the possibility of changing the rule of the game.”
“This brings security because everyone knows exactly what is going to happen. There is no possibility of a process being reviewed.”
In addition to technology, AmFi takes care of the legal aspects of the transactions and compliance with the regulatory requirements of the operations.
The fintech participated in the Central Bank’s Financial Innovations and Technology Laboratory (Lift) with one of only two projects that involved digitizing financial assets.
In this case, the asset was CCB with smart contract settlement through “stablecoins” and central bank digital currencies (CCBCs), such as the digital real, connected by payment accounts with Pix and TED.
Besides Biva, David participated in the foundation of Grafeno, a digital account and financial infrastructure fintech with 6,000 companies as clients, and is part of the board of directors.
“Our team has the track record of helping more companies access the capital markets quickly, safely, and efficiently,” said João Pirola, partner at AmFi.
With information from Valor
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