XRP News Today: Brazilian fintech VERT tokenizes $130M agribusiness credit on XRP Ledger as RWA tokenizations surge 2,260%

Brazilian fintech firm VERT has launched a tokenized private credit platform on the XRP Ledger, signaling a transformative step in real-world asset (RWA) digitization for emerging markets. The platform debuted with a $130 million issuance of Agribusiness Receivables Certificates (CRA), tokenized to streamline capital access for businesses and reduce transaction costs via decentralized infrastructure [1]. This initiative targets Brazil’s agribusiness sector, a critical contributor to the country’s GDP, by leveraging blockchain to enhance credit structuring and regulatory compliance. VERT’s collaboration with Ripple underscores the XRP Ledger’s growing role in supporting tokenized assets, with the ledger now hosting over $118 million in RWA tokenizations after a 2,260% surge in six months [1].

The platform tokenizes private credit obligations, enabling fractional ownership and real-time settlement of loans through the XRP Ledger’s energy-efficient consensus mechanism and sub-second finality. This approach addresses inefficiencies in traditional credit workflows, particularly for small-to-medium enterprises (SMEs) in Brazil, where bureaucratic hurdles and high operational costs often limit access to financing. Institutional investors have already shown interest, with the initial issuance attracting capital for RWA-backed tokens [1]. VERT aims to expand this effort by tokenizing an additional $370 million in assets, leveraging Ripple’s Ethereum-compatible XRPL EVM Sidechain to enable smart contract functionality for programmable automation and complex financial operations [1].

The project highlights the XRP Ledger’s competitive advantages in RWA tokenization, including low-cost transactions and scalability. While Ethereum-based platforms offer established DeFi ecosystems, their high gas fees and slower settlement times may hinder SME-focused projects. VERT’s choice of XRPL aligns with its cost-efficiency goals but raises questions about interoperability with broader RWA markets. Analysts note that regulatory clarity remains a critical hurdle, as tokenized credit instruments must reconcile blockchain’s decentralized nature with existing frameworks for loan agreements and collateral management. VERT’s success could pressure traditional financial institutions to adopt similar technologies to remain competitive, particularly in markets like Brazil, where the Central Bank’s digital asset sandbox provides a favorable testing environment [1].

The initiative reflects a broader trend of blockchain adoption in emerging markets, where inefficiencies in traditional systems create immediate value for tokenization. By focusing on Brazil’s agribusiness sector, VERT addresses a $5 trillion global private credit market, positioning itself to scale tokenized solutions if regulatory frameworks evolve. However, the absence of detailed risk disclosures in the initial announcement leaves uncertainties about investor protections against borrower defaults. Integrating robust smart contract mechanisms or third-party risk assessments could strengthen institutional confidence in the model [1].

Overall, VERT’s tokenized platform demonstrates blockchain’s potential to modernize capital markets by enhancing transparency, liquidity, and accessibility. If the project meets its $500 million tokenization target, it may serve as a blueprint for other emerging economies seeking to unlock liquidity in traditionally opaque asset classes. The XRP Ledger’s role in this evolution highlights its appeal as a scalable, cost-effective infrastructure for RWA tokenization, though long-term success will depend on regulatory alignment and interoperability with broader financial ecosystems.

Source: [1] [Brazil’s VERT Debuts Tokenized Credit Platform on XRP Ledger With $130M Issuance] [https://www.coindesk.com/brazils-vert-debuts-tokenized-credit-platform-on-xrp-ledger-with-130m-issuance]