The Court of Auditors of the State of São Paolo is planning to record every document in Brazil’s first public real estate auction on the blockchain. The initiative aims to reduce legal disputes and enhance transparency in the auction process.
The public auction will include the sale of ten warehouses. The Court of Auditors will also time-stamp and register every piece of documentation involved on the unidentified blockchain.
Nordeste Leiloes partners with InspireIP
Local media reported earlier that auction platform Nordeste Leiloes will conduct the sale in partnership with blockchain firm InspireIP. The country’s auction market has previously faced instances of fraud, with altered documents, inconsistent public records, and fake websites.
Arthur Nunes, official auctioneer at Nordeste Leiloes, said that adopting blockchain technology in public auctions improves transparency for a country vulnerable to fraud and documentary disputes. He also acknowledged that the firm included a blockchain model in the TCE-SP auction, where no file can be altered. He argued that it gives the buyer and the auctioneer technical safety.
The country aims to introduce a verification layer in its auction market to mitigate problems commonly seen in traditional systems, particularly in high-risk sales. Documents from the public auction will be converted into technical evidence, with each file being cryptographically sealed.
Nordeste Leiloes believes the initiative will help the company further its reach into larger urban markets. The initiative enables the company to expand its operations, which have been ongoing for more than 15 years, from the North and Northeastern regions to the South and Southeastern regions. The firm also reported $1.74 million in sales across 65 auctions this year.
“Entering major centers requires not only experience, but also substantially raising the standard of trust. This partnership with InspireIP accelerates this expansion because it brings technological proof that the market already demands and that public bodies are beginning to require.”
–Arthur Nunes, Official auctioneer at Nordeste Leiloes.
Nunes argued that blockchain is not about modernity, but about responsibility, traceability, and transparency. Caroline Nunes, Founder of InspireIP, also acknowledged that the verification process will become public, traceable, and independent.
Caroline also believes that blockchain’s security in public auctions transforms each document into evidence that is difficult to alter. She said that the smallest attempt to change the cryptographic identifier for the photos, reports, or notices will be immediately exposed.
Brazil advances its stance towards blockchain and digital assets
The Brazilian government announced on October 21 that it has advanced its stance towards blockchain and digital assets to better protect investors, prevent illicit activity, and support innovation. The Legal Framework for Crypto Assets also categorizes crypto assets as private movable goods or financial assets, and they do not have legal tender status.
The Central Bank of Brazil (BCB) has also extended its anti-money laundering and countering the financing of terrorism rules to digital asset service providers. The initiative is scheduled to begin in February 2026 and aims to boost Brazil’s cryptocurrency adoption.
The central bank’s Director of Regulation Gilneu Vivan said that the new regulations will reduce scams, fraud, and the use of crypto assets for money laundering. Reuters also reported that the new rules will require crypto service providers to meet corporate oversight standards. They are also required to meet standards around internal monitoring systems, security protocols, and disclosures to regulators. The BCB added that the regulations come with customer protection requirements and transparency standards that didn’t previously apply to crypto asset service providers.
Brazil’s interest in the cryptocurrency sector has surged over the years, with local firm Itau Asset Management urging investors to allocate 1% to 3% of their portfolios to Bitcoin. Cryptopolitan previously reported that the financial firm said the initiative aims to reduce Brazil’s reliance on local markets and local currency.
Itau’s note to investors follows other recommendations from giant financial institutions, including Bank of America’s suggestion of up to 4% in BTC, while BlackRock suggested about 2% for its wealth advisors.
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