Use Cases
Real-world use cases for blockchain solutions
Discover practical applications of Fact Finance's data across industries, from Real Estate to Commodities, driving innovation in the tokenized economy.
Capital markets
Access official economic indices from authorized sources
Real Estate
Square meter price and proof of reserve for properties
Commodities
Qualitative data and monitoring for commodities
Unlocking liquidity and transparency
Latin America's economies heavily rely on the commodities sector, driving global markets for agricultural goods, minerals, and energy. Despite its significance, this sector faces challenges such as operational inefficiencies, high transaction costs, and limited access to financing, particularly for smaller producers.
Tokenization provides a powerful solution by digitizing physical commodities, making them tradable and usable as collateral for financing. This unlocks liquidity for producers while enabling them to retain ownership of their assets.
Reducing risk with verified data for commodity tokenization
In lending markets, managing risk exposure is critical for both lenders and borrowers. Collateralized assets must be as transparent as possible to reduce perceived risk. In agriculture, for example, variables such as region, weather, grain type, and other qualitative factors significantly impact the associated risk score. Addressing these information asymmetries is key to unlocking tokenization's potential to expand financing to small producers.
Fact Finance bridges this gap by connecting tokenized assets, such as grains or livestock, to trusted data sources directly associated with the underlying commodities. This includes:
Real-time pricing pulled directly from trusted exchanges like the CME (Chicago Mercantile Exchange).
Information from farmers' ERP systems, such as productivity history, crop type, and operational timelines.
Weather conditions and climate forecasts that influence yield quality and asset value.
Key information such as proximity to ports or transportation hubs, affecting delivery efficiency and costs.
Event monitoring for tokenized commodities
By enriching tokens with real-time data, oracles can track off-chain events that directly affect the value or utility of tokenized assets. For example, an insurance smart contract for agricultural assets can use weather oracles to monitor events such as droughts or floods, automatically triggering payouts when predefined thresholds are met. Similarly, Fact Finance's oracles can flag significant changes, such as adverse weather conditions, that may require lenders to reassess loan terms.
With this data integration, collateralized tokens become dynamic financial instruments rather than static representations, reducing risk and increasing transparency. This enables lending protocols to offer higher Loan-to-Value (LTV) ratios, giving producers greater access to financing without sacrificing control over their assets.
Unlocking value by reducing information asymmetry
The tokenization of Real Estate offers the advantages of fractional ownership and the potential for increased liquidity, making these high-value assets more accessible to a broader range of investors within a tradable and programmable infrastructure. However, significant information asymmetries between the token and the off-chain asset it represents still limit its full potential. To unlock greater utility and liquidity, tokenized Real Estate assets must be enriched with verified, up-to-date data that provides a real-time connection to the underlying property.
Tokenized properties offer greater accessibility, but blockchain technology lacks intrinsic connections to off-chain data. This creates a gap: while tokens can represent ownership, they do not inherently reflect the current market conditions of the real-world asset they are tied to. Fact Finance bridges this gap by serving as the data layer between tokenized assets and proprietary data sources. For example, a Real Estate company tokenizing a property needs the token to reflect more than just ownership, it must also carry the information of the market value for that asset, transforming the token into a true digital twin.
What type of data?
To confirm that the token corresponds to a specific property, Fact Finance can provide on-chain information, such as: Address and geolocation, Legal status (Due Diligence), Property type (residential or commercial), year of construction.
To reflect property appreciation or depreciation, tokens require up-to-date regional price per square meter data. Fact Finance integrates directly with licensed data institutions to provide precise market pricing, enabling an up-to-date valuation of the property to be calculated.
Real estate contracts often require inflation adjustments. In Brazil, 90% of rental contracts are tied to the inflation index IGP-M. Fact Finance connects directly to this official data source, ensuring seamless inflation updates.
Here's how Fact Finance ensures a reliable connection:
Proof of Authenticity
On-chain wallet validation that the data comes directly from the official data provider, eliminating risks of tampering.
Confidence Index
Our system monitors data for anomalies using statistical and density-based detection techniques. Any outlier data is flagged so the consumer contract can determine how to handle it.
External Auditors
A pool of independent auditors validates the integrity and accuracy of the data provided.
With Fact Finance's integration, tokenized Real Estate moves beyond static representation to become a dynamic financial asset. Tokens can now serve as collateral for loans or be used in DeFi applications, unlocking greater utility and liquidity for both issuers and investors.
Reshaping capital markets in Latin America
Tokenized capital markets are reshaping the financial landscape, especially in regions like Latin America, where high interest rates and inflation have historically shaped economic behavior. As investors seek to protect real returns, tokenization is emerging as a powerful tool to modernize financial systems.
Brazil is at the forefront of adopting blockchain for financial instruments. With the Central Bank developing its own DLT infrastructure and regulators collaborating with market players, tokenization has moved beyond theory to become a reality. This shift brings faster settlements, lower costs, and increased efficiency, all while keeping traditional market standards.
The rise of tokenization platforms signals a new era of financial innovation in Brazil. These companies are working closely with regulators to integrate smart contract programmability into the needs of the traditional financial system. The goal is to create the tokenized economy that maintains regulatory compliance while unlocking new efficiencies.
Fact Finance role connecting official data and tokenized assets
In Brazil, approximately 45% of public debt is tied to the Selic (Interest rate), and another 30% to inflation-adjusted bonds. These indexed instruments dominate over 75% of the country's bond market. Beyond public debt, private long-term contracts, such as residential leases, also rely on inflation indexing, with the General Market Price Index (IGP-M) being a staple for rent price adjustments.
Just like the traditional economy, the tokenized economy also needs to rely on accurate and verified economic data. Fact Finance provides seamless, secure on-chain access to economic indices, such as CDI (interest rate) and IGP-M (inflation), directly from official sources. Our oracle infrastructure acts as a data hub, integrating this information into tokenized assets like public bonds, private credit, and long-term contracts.
By bridging real-world economic data with asset tokenization, Fact Finance enables tokenized assets to receive real-time price updates based on official data.
What type of data?
(Interbank Deposit Certificate)
Daily or monthly on-chain updates of Brazil's key interest rate, enabling tokenized assets to reflect accurate returns tied to interest rate.
(Broad Consumer Price Index)
Official inflation data directly on-chain, ensuring tokenized contracts, such as bonds and leases, adjust automatically to preserve real value.
(General Market Price Index)
Inflation-linked updates for sectors like Real estate, enabling accurate rent adjustments and reliable pricing for tokenized assets.