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- Brazil’s VERT launches blockchain platform on XRP Ledger to modernize the $200B private credit market.
- The new platform provides real-time tracking of payments, loan terms, and cash flow through the XRP Ledger.
- XRP sees record high in perpetual futures contracts, reflecting growing institutional interest and bullish sentiment.
The Brazilian securitization company VERT has created a new blockchain-based company targeting the private credit marketplace, the XRP Ledger. As announced by the company, the inaugural project of the platform will include a R$700 million ($130 million) issue of an Agribusiness Receivables Certificate (CRA). The move is set to modernize the agricultural finance market of Brazil, where more transparency and traceability will be provided.
The CRA is a conventional financial instrument in the Brazilian agricultural sector. The XRP Ledger and its Ethereum Virtual Machine (EVM)-compatible sidechain are used to document this new issuance on-chain. The combination enables real-time tracking of loan payments, terms and cash flow events. This will contribute to the ability to manage the asset throughout its cycle, offering improved tracking to investors and regulating bodies.
Also Read: Ripple (XRP) Rally Builds: Will It Smash the $4 Barrier?
Blockchain-Driven Transparency
The $200 billion of the private credit business in Brazil is alleged to be turned around by the VERT platform. However, the platform ensures full-cycle traceability, creates secure metadata and transparency by utilizing blockchain technology. The system combines blockchain transparency and the durability of off-chain infrastructure.
According to Gabriel Braga, the VERT Director of Digital Assets, the platform is highly detailed in logging its operational events. He said the platform provides real-time traceability and transparency. However, the platform records all the financial activities in real-time, making it more responsible and accounting, offering insights into how assets are managed. This change in credit tracking may be a major accomplishment in financial markets.
However, the platform was developed through the use of the cost-efficient consensus mechanism that the XRP Ledger offers. The role of the smart contract support through the EVM sidechain was not excluded. These technological aspects enabled the platform to be viable as well as efficient in transacting faster and securely.
Brazil Attracts Investor Interest
Foreign investors have already shown interest with the new platform by VERT. There is a high demand for increased disclosure on how credit assets are handled by management. Ripple LATAM Managing Director Silvio Pegado hailed the move as an obligatory step in the Brazilian financial sector. He added that blockchain technology, in the form of the XRP Ledger, could update financial markets, which are essential to national development.
XRP has also experienced heightened market transactions. Last week, the notional open interest in XRP’s perpetual futures surpassed a record of $8.8 billion. Such an increase is a reflection of increased bullish activity, and there are many long positions. Moreover, there has been a surge in the wallets with 1 million or more XRP tokens, indicating increasing institutional attention.
Also Read: Expert Predicts XRP Could Hit $45 as Gann Chart Suggests 1200 Percent Price Rally
