VERT Capital, a Brazilian credit structuring and securitization firm, plans to tokenize up to $1 billion in debt and receivables on the XDC Network (XDC), expanding the scope of public blockchain use in structured finance, the firms told CoinDesk.
As part of the deal, the firms will move financial instruments such as corporate debt, agribusiness receivables and structured credit products on-chain over the next 30 months.
The migration shifts VERT’s existing securitization work, which includes clients like Cargill, Santander and Raízen, towards digital issuance with a blockchain-based infrastructure designed to meet regulatory and audit requirements.
“Our goal is to transform traditional structured assets into digital assets with global liquidity,” Gabriel Braga, head of digital assets at VERT, said in statement. “We already have ready-to-issue structures, proven frameworks, and validated compliance.”
Meanwhile, XDC Network, an Ethereum-compatible layer 1 with two-second settlement times and ISO 20022 messaging support, has positioned itself as a hub for real-world asset tokenization. Its partners include Circle, Deutsche Telekom MMS and Securitize, and the network has integrated frameworks like MLETR and R3 Corda to support cross-border finance.
The deal between VERT and XDC adds to a growing list of tokenization moves around the world. Traditional financial institutions increasingly explore blockchain rails for moving and recording ownership of financial instruments like credit, bonds and funds, also dubbed real-world assets (RWA), seeking to gain operational efficiencies.
It can potentially be a huge opportunity: tokenized assets could grow to a multiple trillion-dollar market over the next few years, as projected by reports from Ripple, BCG, McKinsey and others.
Brazil has emerged as a key hub for asset tokenization in the region, Diego Consimo, XDC Network’s head of Latin America, noted in an interview with CoinDesk.
Brazil-based crypto exchange Mercado Bitcoin shared plans earlier in July to tokenize over $200 million in RWAs, including fixed income and equity instruments, on the XRP Ledger. Last week, VERT also debuted a credit protocol on XRP Ledger with a $130 million Agribusiness Receivables Certificate (CRA).
Read more: Brazil’s VERT Debuts Tokenized Credit Platform on XRP Ledger With $130M Issuance