A historic partnership between LIQI and XDC Network has elevated Brazil into one of the most visible markets for tokenized real-world assets (RWA).
XDC Network provides the robust blockchain infrastructure necessary for the institutional market. They are based in Singapore and supports RWA tokenization in multiple markets.
Of note, the network is compatible with the Ethereum Virtual Machine (EVM) and offers versatility for various partners looking to leverage its high-speed and low-cost network. Meanwhile, LIQI brings digital asset investment expertise to the table. The Brazilian Fintech startup launched in 2021 and has grown in the field of digital asset investments to its current stature.
Meanwhile, LIQI brings digital asset investment expertise to the table. The Brazilian Fintech startup launched in 2021 and has grown in the field of digital asset investments to its current stature.
The company attracted notable investment partners in the fields of regulated infrastructure and issuance of digital instruments. At the moment, it is currently one of the leading players in the digital transformation of Brazilian capital markets.
Tokenizing up to $500 million in RWAs
The strategic partnership will allow XDC Network to issue up to $500 million on RWA on the XDC Network.
In early 2024, Larry Fink of BlackRock predicted the tokenization market to manage over $1 trillion of assets by the end of the decade. Presently, billions, mostly currencies and treasuries, have been tokenized on multiple chains like Ethereum and Algorand.
However, this is about to change with XDC in the picture. The hybrid, enterprise-grade blockchain packs the infrastructural capability and security necessary to secure these investments. LIQI has expertise in the local regulatory landscape, with its operations largely in the Brazilian market.
This partnership forms one of the largest institutional operations in the Latin America region.
LIQI looks to structure significant real-world assets on XDC and take Brazil’s RWA scene to the international stage. XDC packs the international visibility and compliance background as well as the liquidity necessary for the massive operation.
LIQI has raised millions of dollars from various investment groups active in the Brazilian investment and tokenization landscape.
It has led to tokenization that involved institutions like Banco BV and Itaú. Moreover, LIQI was vital in launching Brazil’s first tokenized investment in credit rights and related tokenized financial models.
Compliance with regulatory requirements
XDC intends to leverage the benefits of a public blockchain, being instantaneous settlement and low costs, with standards expected by institutional investors.
RWAs attract regulatory scrutiny and compliance with international standards like ISO 20022 and MLETR standards ensures easier operations.
LIQI and XDC look to offer RWAs such as private credit, receivables, various agribusiness investments and real estate. These products require partnerships with various local and international companies. Utilization and compliance with Brazil’s regulatory structures will be a crucial aspect of ensuring sustainable implementation.
Brazil’s increasing importance on the crypto global stage
Brazil has several factors that make it an attractive destination for crypto startups. It has a large domestic market, with excellent rates of digital and financial literacy. The generally positive nature of the regulatory landscape has also contributed to the exponential growth of startups in the country.
These factors contribute toward an overall promising market. XDC Network aims to position itself as the go-to blockchain platform in the region and this announcement goes a long way toward improving visibility. The global RWA market could be worth trillions in a decade and Brazil has everything going for it to be one of the most prominent markets by then.
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