Brazilian Financial Innovation with Blockchain
VERT Capital, a Brazilian financial consulting firm, has taken a significant step in modernizing the country’s financial infrastructure. They’ve successfully moved public pension payments onto a blockchain system using XRP Ledger’s technology. This isn’t just theoretical – they’ve actually processed real pension funds through this new digital framework.
I think what’s interesting here is how they’re approaching this. Rather than creating entirely new financial products, they’re taking existing pension assets and making them work within a blockchain environment. It’s a practical application that could show other countries how to bridge traditional finance with newer technologies.
$40 Million in Tokenized Assets
Ripple announced that VERT has completed its second on-chain issuance, bringing $40 million worth of tokenized assets onto the blockchain. The expectation is that this will grow substantially – perhaps reaching around $190 million in the near future. That’s not an insignificant amount, especially for what appears to be one of the first major implementations of this type.
Brazil seems to be approaching this with careful regulation. They’ve developed blockchain utility with strong investor protection rules while aiming to make financial processes more efficient. Using both Ripple’s XRP blockchain and EVM sidechain, VERT is digitally recording all key events, documents, and transactions for these funds. This provides real-time transparency while maintaining compliance with Brazil’s financial regulations.
Industry Response and Future Plans
Gabriel Braga, VERT’s Director of Digital Assets, commented on the development. He mentioned that this merger between blockchain and commerce has made financial assets fully digital rather than just copies of traditional ones. “This combination of traceability, compliance, and programmability lays the groundwork for a more efficient and supervised capital market,” he added.
VERT is collaborating with BYX to manage and analyze the pension-backed assets. Together, they plan to launch more tokenized funds using blockchain technology. The partnership extends further – VERT and Ripple are now participating in LEAP, a program by Brazil’s Securities and Exchange Commission (CVM) that explores how blockchain can function within regulated markets.
Their primary objective is demonstrating how blockchain can simplify secondary trading of securities, reduce supervision costs, and connect financial systems more efficiently. Silvio Pegado, Ripple’s Managing Director for Latin America, noted that Brazil is showing how an on-chain financial system can operate safely in real-world markets.
He pointed out that by combining compliance-ready infrastructure with practical use cases like VERT’s tokenized credit platform, the region is setting a global example for how on-chain finance can work in practice. It’s worth watching how this develops – if successful, it could provide a template for other countries considering similar blockchain implementations in their financial systems.
