BRZ Token has partnered with Hong Kong-based international exchange FTX to give the Brazilian investor access to its crypto products. Among them are spot and perpetual pairs of more than 30 cryptocurrencies, which are not available on exchanges operating in Brazil. The partnership allows investors to use the platform with BRZ, stable coin paired 1:1 with the Brazilian real, offering international liquidity to local Brazilian investors.
Thus, FTX is the first exchange with tokenized global assets – digital representations of real assets in a blockchain network – that can be easily accessed by Brazilians in reais. The platform offers synthetic tokens of oil, gold, and a few dozen more cryptocurrencies. “We are thrilled to announce this partnership to give Brazilian investors access to these sophisticated products from the crypto market through BRZ, our Brazilian stable token. FTX will be a gamechanger in the Brazilian market”, foresees the CEO of Transfero Swiss, Thiago Cesar.
The exchange recently launched synthetic oil tokens. They function as perpetual contracts for a token whose price bases on the fluctuation of the oil market. The launching comes at a time when oil prices have been facing strong volatility, with futures contracts trading negatively in futures markets. “There was a lot of customer demand for a product like this, and the fall in oil prices didn’t get in the way of its performance,” says FTX operations manager Tristan Yver.
How FTX synthetic tokens work
Synthetic tokens are contracts that enable the investor to maintain a position on an asset without owning it. They are widely used in the traditional financial market and serve to put together strategies for increasing earnings or limiting losses in exchange for a premium payment. Traditionally, crypto exchanges use reverse (nonlinear) products, which allow contracts to generate losses or profits based on the price of cryptocurrencies. However, FTX operates with a permanent linear contract, which allows its losses and gains to reflect in other crypto assets, such as BRZ or USDT.
“Currently, a citizen outside the U.S. has difficulty investing in an oil-based product. In this way, the company created a synthetic token that allows people to obtain similar exposure to the market without using sophisticated intermediaries. Before, this was only available to people with greater purchasing power and institutions”, explains Yver.
In addition to oil-analog futures contracts, FTX has index-based contracts and crypto baskets for more than 30 currencies, contracts that follow crypto asset volatility, as well as gold-backed crypto assets. Besides other products such as the Exchanges Index (EXCH-PERP), a basket composed of cryptocurrencies from various Exchanges, MID-PERP, a product whose price consists of a basket of several “intermediate” altcoins; and SHIT-PERP, whose value is on the small altcoins. These baskets allow the person to not expose the portfolio to the variation of only one cryptocurrency.
BRZ Token as a bridge between Brazilians and international market
With this partnership, BRZ reaffirms its position as a bridge between Brazilians and the international investment market. By the way, the BRZ was thought based on this possibility. “As the Brazilian Real has no liquidity abroad, in 2019, we launched BRZ. Besides that, Brazilians cannot have currencies other than the Real in the national territory”, points out the executive.