Blockchain technology remains one of the most searched for technologies when it comes to improving banking systems. The latest financial entity to join this trend is Santander bank in Brazil; but the novelty this time is that the bank is not using it for the typical transactions one would expect.
Santander Brazil launched, in testing mode, a blockchain-based tokenization platform that could carry out the transferring of ownership for used cars in the country. This platform would help with the automatization of the process for registering the ownership rights through the implementation of smart contracts based on a delivery versus payment operation. This specific mechanism would guarantee that both parties obtain what they’re looking for in a secure way; for the seller to obtain the money and for the buyer to obtain the ownership of the vehicle but only once the payment has been confirmed.
Santander Brazil forms part of the Santander Group in Spain, the largest commercial bank in the European country. The Brazilian entity is well-known for its friendly crypto policy, with its CEO Mario Leão even suggesting the upcoming launch of a crypto trading option for its customers. The bank is also known for developing financial processes using blockchain technology and collaborating with other crypto firms in the industry.
Santander Brazil partnered up with Parfin, a big digital custody and Web3 provider in Latin America. According to the co-founder and CTO of Parfin, Alex Buelau, the new platform will be based on a proprietary blockchain network developed from the Ethereum blockchain, but the system will remain private, restricting access from any other party. However, Buelau also highlighted that regulation represents a big challenge when it comes to implementing new technologies in the banking sector, but said Brazil was ahead of its peers, which could ease the hardship.
Jayme Chataque, Open Finance Superintendent at Santander, also commented on the launching of the platform saying that it could also be used in other markets, such as the selling and registering of properties.
Brazil is seeking to innovate through the implementation of disruptive technologies and banks continue to offer new platforms based on these technologies to improve systems in all areas. For example, Santander is also seeking to launch a crypto trading service to its customers at some point in the future. Additionally, as part of Brazil’s central bank’s Financial Innovations Laboratory (Lift), there’s also ideas to create Brazil’s central bank digital currency, which allegedly is scheduled to launch sometime in 2024.
