Brazil is rapidly advancing its blockchain-based financial infrastructure as VERT Capital completes its second tokenized transaction on the XRP Ledger (XRPL), launching the country's first tokenized FIDC (Fundo de Investimento em Direitos Creditórios) backed by public-pension receivables. Ripple disclosed on Oct. 24 that VERT Capital has expanded its operations on the XRPL and the XRPL EVM Sidechain, marking a shift from experimentation to institutional adoption of regulated tokenized finance. The fund currently manages over BRL 200 million (~$40 million) and is projected to reach BRL 1 billion as institutional participation grows.
Brazil's Tokenization Wave Accelerates
Brazil is moving from pilot projects to full institutional adoption of blockchain-based, regulated credit markets. Ripple stated: 'Just three months after launching its first on-chain structured credit platform on the XRP Ledger and XRPL EVM Sidechain, VERT Capital has completed its second tokenized transaction in partnership with Ripple.' This achievement highlights Brazil's rapid progress in digital financial infrastructure. VERT Capital is partnering with fintech firm BYX to tokenize additional funds by year-end, further integrating structured-credit origination and blockchain-based asset management. The expansion signals that tokenization in Brazil is no longer an experiment but an emerging market reality.
Significance of Pension Receivables Tokenization
The latest transaction represents Brazil's first tokenized FIDC backed by public-pension receivables, a secure asset class tied to government pension payments with low risk and stable cash flows. By tokenizing these receivables, VERT Capital offers institutional investors a compliant, transparent, and auditable on-chain investment opportunity. Ripple noted: 'The new issuance expands the platform's scope and brings a new class of regulated credit on-chain, showing that tokenization in Brazil is no longer an experiment, but an emerging market reality.' This model leverages the inherent stability of government-backed pension obligations while providing the benefits of blockchain-based transparency and efficiency.
Compliance and Automation in Harmony
VERT Capital's model fully utilizes the automation and compliance capabilities of the XRPL and its EVM Sidechain. Ripple emphasized: 'Using the XRPL and its EVM Sidechain, VERT's digital-credit platform records lifecycle events, documentation, and payments directly on-chain, enabling near-real-time auditability while complying fully with Brazilian securities regulations.' By leveraging the Brazilian Securities and Exchange Commission's (CVM) LEAP regulatory initiative—a sandbox for blockchain-based financial innovation—Ripple and VERT demonstrate how transparency, supervision, and interoperability can coexist in Brazil's emerging digital capital markets. The LEAP framework provides a controlled environment for testing tokenized assets under regulatory oversight, paving the way for broader adoption.
Future Outlook
With growing institutional appetite for tokenized credit in Brazil, VERT Capital plans to expand its on-chain product lineup further. Ripple indicated that Brazil's tokenized market is now mainstream, with VERT's assets under management expected to exceed BRL 1 billion by end-2025. Additional asset classes, such as corporate credit and real estate, may be introduced. The success in Brazil could serve as a blueprint for other Latin American countries exploring tokenization, driving the region's transformation toward digital finance. As Ripple and VERT continue to push the boundaries of regulated tokenization, Brazil stands at the forefront of a global shift toward blockchain-enabled capital markets.