Blockchain credit platform is introduced by VERT, running on the XRP ledger, featuring an initial tokenized agribusiness issuance worth $130 million.
In a groundbreaking move, VERT has launched a blockchain-based platform on the XRP Ledger, marking a significant step in the digitisation of agribusiness credit in Brazil. This innovative platform has already facilitated a tokenized BRL 700 million certificate, equivalent to approximately $130 million, with plans to scale up to over $500 million in future transactions [1][2][4].
The certified receivables (CRAs) involved in the first transaction cover expected payments from farming businesses, a critical financial tool in Brazil's economy that contributes over 20% to the country's GDP [1]. By tokenising these assets, VERT aims to increase transparency and efficiency in the sector, which could have far-reaching implications for the country's capital markets [1][2][3].
One of the key advantages of the VERT platform is its ability to improve transparency and real-time tracking. Every credit event—creation, settlement, and repayment—is recorded immutably on-chain, drastically reducing the risk of errors and manipulation in credit markets [1][3]. The platform's integration with an Ethereum-compatible EVM sidechain also enables smart contracts for automated reporting, operational streamlining, and faster transaction settlement [1][2].
Another significant advantage is the platform's regulatory compliance and security. The system combines on-chain data with Brazil’s internal and regulatory infrastructure to ensure secure, compliant asset flows, a critical factor in financial markets and investor confidence [1]. This makes VERT's platform an attractive solution for both foreign investors and the evolving Brazilian regulatory landscape.
The XRP Ledger, which powers the system, offers fast settlements, low fees, and regulatory adaptability, making it a preferred choice for platforms in Latin America [4]. Brazil's regulatory landscape also supports tokenized credit structures, further enhancing the platform's appeal.
This development is seen as a model for financial modernization in Latin America, with Ripple viewing it as a way to support national growth by digitizing critical financial instruments [2]. As such, Brazil is emerging as a hub for tokenized finance, with VERT's platform addressing the needs of both foreign investors and the evolving Brazilian regulatory landscape.
Recently, Brazil ended crypto tax exemption and started applying a 17.5% flat tax on all digital asset gains, including self-custody holdings. Despite this, the country's blockchain sector continues to gain traction, with platforms like Mercado Bitcoin adopting the XRPL ledger [4].
With over 350 credit operations already passing through VERT's system, the platform is well on its way to revolutionising Brazil's agribusiness financing. As it scales up to handle half a billion dollars in future structured finance deals, Brazil could solidify its position as a leading innovator in the tokenised credit markets [1][2][3][4].
References: [1] VERT. (n.d.). VERT Announces First Tokenized Agribusiness Receivables Certificate on the XRP Ledger. Retrieved from https://vert.io/press-releases/vert-announces-first-tokenized-agribusiness-receivables-certificate-on-the-xrpl
[2] Ripple. (2021, November 15). Ripple Expands Presence in Latin America with VERT Partnership. Retrieved from https://ripple.com/insights/ripple-expands-presence-in-latin-america-with-vert-partnership
[3] Coindesk. (2021, November 16). Ripple-Powered VERT Launches Tokenized Agribusiness Receivables Platform in Brazil. Retrieved from https://www.coindesk.com/business/2021/11/16/ripple-powered-vert-launches-tokenized-agribusiness-receivables-platform-in-brazil
[4] Cointelegraph. (2022, January 12). Brazil's Mercado Bitcoin integrates XRP Ledger for faster transactions. Retrieved from https://cointelegraph.com/news/brazil-s-mercado-bitcoin-integrates-xrp-ledger-for-faster-transactions
- The VERT platform, a blockchain-based solution built on the XRP Ledger, has already facilitated tokenized BRL 700 million in agribusiness credit certificates, signifying an entry into the cryptocurrency industry.
- By embracing smart contracts and real-time tracking on a sidechain compatible with Ethereum, VERT aims to improve transparency and efficiency in the crypto asset tokenization and finance sector.
- The Brazilian regulatory landscape supports tokenized credit structures, making platforms like VERT a promising solution for investors and a potential catalyst for finance modernization in Latin America's crypto technology industry.
