Green, a Brazilian securitization and funding manager, said on Wednesday that he started a blockchain-based platform to manage private credit transactions on the large XRP book (XRP) and its Ethereum compatible napkin chain, providing real assets token to the ecosystem.
The first transaction of the platform was the issue of a BRL 700 million, or 130 million dollars, a certificate of agrifood claims (CRA), a regulated instrument used to finance agricultural production, according to a press release.
The CRA puts future cash flow due by agro-industries such as reimbursements of loan to titles for investors. Agriculture represents more than 20% of Brazil’s GDP, making the sector a key test bench for digital financial tools.
The program highlights the trend in accelerating the tokenization of real assets (RWA), using blockchain rails to manage transactions with traditional financial instruments such as obligations, credit and funds. The process promises faster and more effective establishments and wider access to investors compared to traditional banking channels, especially in emerging economies with less developed capital markets.
The role of XRP LEDGER as tokened Rwa HUB has increased, Dubai selecting the network for its ambitious real estate tokenization plan to put $ 16 billion in real estate acts at the top by 2033.
By directly recording the events of the active issue and life cycle, Vert said that its system improved the transparency and traceability of structured credit operations. The platform fits into the regulated financial infrastructure in Brazil and uses redundancy out of the chain to meet compliance standards, said the firm.
“This is a concrete step towards the evolution of tokenization as a structural pillar of the modern capital market,” said Gabriel Braga, director of digital assets at VECT, in a press release. “The tokenization also responds to the demand for greater transparency of operations, mainly from foreign investors.”
Ripple, a key contributor to Ledger XRP, also contributed to the project.
“Agro-industry plays an essential role in the Brazilian economy, and improving the way in which credit is structured and followed in this sector is significant progress,” said Silvio Pegado, CEO of Ripple in the Latin American region.
“This step shows how blockchain technology, thanks to the major XRP book, can serve as a reliable infrastructure for the modernization of the financial markets which are fundamental to national growth.”
Vert said that future plans include extending the platform to additional asset classes and structured credit offers worth more than $ 500 million.
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