Brazilian asset manager VERT launched a blockchain-enabled platform for the administration of private credit operations, developed on the XRP Ledger and its Ethereum-compatible EVM sidechain. It will introduce more transparency, velocity, and efficiency in Brazil’s markets of capital by verifying significant events and transactions on-chain.
The exchange’s initial transaction was the issuance of an Agribusiness Receivables Certificate (CRA) BRL 700 million (around $130 million) financial instrument, also very popular in Brazil to package future agribusiness cash flows, e.g., repayments of loans or trade receivables, into investment products.
They finance farm operations and exports and are therefore a very important element in the Brazilian economy.
Blockchain Credit Platform
With the low cost of transactions and compliance capabilities of the XRP Ledger, VERT’s solution enables secure and transparent settlement at every phase of the structured credit life cycle. The integration with the EVM sidechain enhances smart contract functionality, allowing for automated processes, document monitoring, and enhanced reporting.
The platform is intended to provide complete traceability of asset issuance, transfers, payments, and other lifecycle milestones. It also features off-chain redundancy in the form of VERT’s internal systems and records data within Brazil’s regulated financial infrastructure to provide compliance requirements.
Gabriel Braga, VERT’s Director of Digital Assets, described the system as constructed to capture operation events as near real-time as possible. A high degree of traceability is a response to increasing requests for transparency, especially from overseas investors.
Braga envisions tokenization to be a structural foundation of contemporary capital markets and a source of innovation for emerging financial infrastructure.
Ripple, another heavy contributor to the XRP Ledger, also worked together on the project. Silvio Pegado, Ripple’s Managing Director for Latin America, emphasized the need for credit structures in the agribusiness segment to be modernized, a key sector in Brazil’s economy.
The application of blockchain technology in the sense that it offers a reliable framework for enhancing the manner in which financial assets get issued, followed, and administered is critical.
VERT is looking to scale up the platform to accommodate other asset classes and structured credit operations with an estimated value of over $500 million. Having had a background of spearheading the CRA market in Brazil and having issued over BRL 86 billion in operations to date, VERT is still at the helm of innovation within the financial ecosystem of the country.
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