Brazil’s VERT launches private credit solution on XRP Ledger

VERT, a Brazil-based capital markets firm, has joined the growing trend of companies looking to tap into tokenization with a new solution on XRP Ledger.

The fund management firm’s move comes as Wall Street giants such as Goldman Sachs, BNY and JPMorgan a tokenized assets market that has attracted products from fund behemoths like BlackRock, Fidelity and Franklin Templeton.

XRP Ledger is powered by the XRP (XRP) token.

Why is VERT’s move important?

VERT’s blockchain-based platform on the XRPL will focus on the issuance and management of private credit operations. Ripple expands its reach in LATAM with this initiative.

According to the details, the on-chain venture goes live with the issuance of an Agribusiness Receivables Certificate. The RCA is a regulated credit instrument managed across a sector that accounts for over 20% of Brazil’s gross domestic product.

“Agribusiness plays an essential role in Brazil’s economy, and improving how credit is structured and tracked in this sector is a meaningful advancement,” said Silvio Pegado, managing director of Ripple in Latin America.

The first CRA transaction will be valued at 700 million Brazilian real, or approximately $130 million.

How is XRP Ledger’s traction as a tokenization platform? 

Recently, Token Relations revealed the total tokenized real-world assets on XRPL had grown by more than 2,260% in six months — from $5 million at the start of the year to over $118 million at the beginning of July.

Mercado Bitcoin, Latin America’s largest cryptocurrency exchange and alternative asset investment platform, announced on July 4 that it will bring over $200 million in tokenized RWAs to the XRPL. The assets the platform plans to tokenize on the blockchain include fixed income and equity instruments. 

Guggenheim Capital is also tapping into the XRP Ledger. Its subsidiary, Guggenheim Treasury Services, issued U.S. Treasury-backed digital commercial paper on the Ripple blockchain platform.

June also saw tokenized assets platform Ondo Finance unveil its short-term Treasuries bill OUSG, while Circle added native USDC (USDC) to XRP Ledger.

VERT eyes $500 million in RWA on XRPL

VERT’s initiative will add to this traction as it helps Brazil’s capital markets come on-chain. The company aims to generate $500 million in value that will be on-chain. Benefits will include increased operational efficiency, transparency, and accessibility.

As well as issuing private credit on the XRPL, VERT is integrating Ripple’s Ethereum-compatible protocol XRPL EVM Sidechain to leverage smart contracts for programmable automation among other functionality.