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Brazilian capital markets firm VERT is pioneering tokenization on the XRP Ledger (XRPL), signaling a significant step in blockchain adoption for Latin America’s financial sector.
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This initiative focuses on private credit issuance, starting with a landmark Agribusiness Receivables Certificate (CRA) transaction valued at approximately $130 million.
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Silvio Pegado, managing director of Ripple in Latin America, emphasized the importance of enhancing credit structuring and tracking in Brazil’s agribusiness sector, which represents over 20% of the country’s GDP.
VERT leverages XRP Ledger to tokenize private credit in Brazil’s agribusiness, driving transparency and efficiency in capital markets with a $130M initial issuance.
VERT’s Strategic Entry into Tokenization on XRP Ledger Enhances Brazil’s Capital Markets
VERT’s adoption of the XRP Ledger for tokenizing private credit instruments marks a pivotal development in Latin America’s blockchain landscape. By launching its platform with the issuance of an Agribusiness Receivables Certificate (CRA), VERT targets a sector that significantly contributes to Brazil’s economy. This move not only facilitates more efficient credit management but also aligns with Ripple’s broader strategy to expand blockchain utility across emerging markets. The CRA transaction, valued at 700 million Brazilian real (~$130 million), exemplifies how tokenization can streamline regulatory compliance and improve asset liquidity in traditionally opaque markets.
XRPL’s Growing Role as a Leading Tokenization Infrastructure
The XRP Ledger has witnessed exponential growth in tokenized real-world assets (RWAs), surging over 2,260% within six months to exceed $118 million in total value. This momentum is bolstered by major players such as Mercado Bitcoin, which plans to tokenize over $200 million in fixed income and equity instruments on XRPL. Additionally, Guggenheim Treasury Services’ issuance of U.S. Treasury-backed digital commercial paper on the Ripple blockchain underscores XRPL’s increasing adoption by institutional investors. These developments highlight XRPL’s robust capabilities in supporting diverse asset classes with enhanced transparency and operational efficiency.
VERT’s Ambition to Tokenize $500 Million in Real-World Assets on XRPL
Building on the growing ecosystem, VERT aims to bring $500 million worth of real-world assets onto the XRP Ledger, further integrating Brazil’s capital markets with blockchain technology. The initiative promises to deliver significant benefits including improved transparency, faster settlement times, and greater accessibility for investors. VERT is also leveraging Ripple’s Ethereum-compatible XRPL EVM Sidechain, enabling smart contract functionality that facilitates programmable automation and complex financial operations. This integration positions VERT at the forefront of innovative capital market solutions in Latin America.
Implications for Latin America’s Financial Innovation
VERT’s collaboration with Ripple and adoption of XRPL technology exemplify the region’s increasing embrace of blockchain to modernize financial infrastructure. By focusing on private credit and agribusiness—a cornerstone of Brazil’s economy—this initiative could serve as a blueprint for other emerging markets seeking to unlock liquidity and enhance credit transparency through tokenization. The strategic use of XRPL’s scalable and cost-effective platform also underscores the growing preference for blockchain solutions that combine regulatory compliance with operational efficiency.
Conclusion
VERT’s launch of a tokenized private credit platform on the XRP Ledger represents a meaningful advancement in Latin America’s capital markets, particularly within Brazil’s vital agribusiness sector. The $130 million initial CRA issuance and the broader $500 million tokenization target demonstrate the tangible benefits of blockchain adoption, including enhanced transparency, efficiency, and accessibility. As XRPL continues to attract institutional interest and expand its real-world asset ecosystem, VERT’s initiative highlights the transformative potential of tokenization in emerging economies.
