Brazil’s VERT Capital to Tokenize $1B in Real-World Assets on XDC Network

VERT Capital, a Brazilian firm specializing in credit structuring and securitization, is pioneering the use of blockchain technology in structured finance. The company plans to tokenize up to $1 billion in debt and receivables on the XDC Network over the next 30 months. This initiative marks a significant expansion of public blockchain applications within the financial sector.

This move will see various financial instruments, including corporate debt, agribusiness receivables, and structured credit products, migrated onto the XDC blockchain. This digital issuance utilizes a blockchain-based infrastructure designed to meet stringent regulatory and audit requirements. VERT’s existing securitization work, which already includes prominent clients such as Cargill, Santander, and Raízen, will be significantly enhanced by this transition. The company’s objective is to enhance the global liquidity of traditional structured assets by transforming them into digital equivalents. VERT has confirmed that it possesses the necessary structures, frameworks, and validated compliance measures to facilitate a smooth transition.

XDC Network, an Ethereum-compatible layer-1 blockchain, is well-suited to this task due to its two-second settlement times and ISO 20022 messaging support. The network has established itself as a hub for real-world asset (RWA) tokenization, boasting partnerships with prominent organizations including Circle, Deutsche Telekom MMS, and Securitize. Integration with frameworks like MLETR and R3 Corda further strengthens its capacity for facilitating cross-border finance.

This collaboration between VERT and XDC adds to the growing global trend of tokenizing assets. Traditional financial institutions are increasingly exploring blockchain’s potential to streamline the movement and recording of ownership for financial instruments such as credit, bonds, and funds. This shift is driven by the pursuit of operational efficiencies. Industry projections suggest that the market for tokenized assets could reach multiple trillions of dollars in the coming years.

Brazil’s emergence as a regional leader in asset tokenization is highlighted by this initiative. This is further underscored by Mercado Bitcoin’s recent announcement of plans to tokenize over $200 million in RWAs on the XRP Ledger. Furthermore, VERT recently launched a credit protocol on the XRP Ledger, issuing $130 million in Agribusiness Receivables Certificates (CRA). These developments showcase the growing adoption of blockchain technology within Brazil’s financial landscape and beyond.