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Home»Blockchain»Why Brazil and XDC Network Are Winning the RWA Race
Blockchain

Why Brazil and XDC Network Are Winning the RWA Race

NBTCBy NBTC03/02/2026No Comments7 Mins Read
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For years, RWA tokenization was a tomorrow story. In 2026, it has officially become a today reality. While the retail market often fixates on the price action of speculative tokens, a far more profound transformation is occurring in the boring sectors of the industry, trade finance, regulated credit, and treasury management. As we move through 2026, it has become increasingly clear that the future of blockchain lies in Real-World Asset (RWA) tokenization, and the global epicenter of this shift is Brazil.

The recent milestone reached by Liqi Digital Assets and the $XDC Network, surpassing 100US$ million in tokenized RWAs is not just a win for two companies. It is a signal to the global financial community that the era of blockchain pilots is over. We have entered the era of institutional scale.

The Brazilian Exceptionalism

To understand why Brazil is leading the world in RWA tokenization, one must look at the unique synergy between its regulators and its private sector. While other major economies have struggled with regulation by enforcement or political deadlock, Brazil’s Central Bank (BCB) and the Securities and Exchange Commission (CVM) have treated blockchain as a primary tool for financial modernization.

The BCB’s Drex (Digital Real) project has provided a philosophical and technical North Star for the country. By signaling that the future of the Brazilian Real is on-chain, the government has given a green light to the nation’s largest financial institutions.

Today, the participation of giants like Banco Itaú, Banco ABC, and Banco BV is not experimental, it is operational. These institutions, alongside specialized credit managers like Milenio Capital, are using tokenization to solve real world problems, such as reducing the cost of capital, shortening settlement cycles, and eliminating the manual errors that have plagued credit markets for decades.

Crossing the US$ 100M Threshold

In the lifecycle of a financial technology, certain numbers act as proof of life. For Liqi, the $100 million mark represents the transition from a startup with a good idea to a systemic player in the Brazilian credit market.

This volume represents a diverse array of regulated assets, including Corporate Credit Notes (CCBs) and other structured financial instruments. When you move $100 million on a blockchain, you are no longer testing if the technology works; you are proving that the compliance, the legal wrappers, and the secondary market liquidity are robust enough for professional fiduciaries.

“Surpassing the US$ 100 million mark is a significant milestone for Liqi and for Brazil’s digital asset ecosystem,” says Daniel Coquieri, CEO of Liqi Digital Assets.

“But this is just the foundation. Our target of US$ 500 million in issuances through 2026 reflects a growing appetite from institutional investors who see tokenization not as a ‘crypto’ play, but as a more efficient way to manage debt and credit.”

Why Infrastructure is the Ultimate Competitive Advantage

As the RWA sector matures, the conversation is shifting from what is being tokenized to where it is being settled. For institutional issuers, the choice of a blockchain network is a risk-management decision.

In the early days of tokenization, many projects defaulted to Ethereum due to its liquidity. However, the congestion tax, volatile gas fees that can spike from $2 to $50 in an hour make it unusable for high-frequency or high-volume credit settlement. If a business is trying to settle a $5,000 credit installment, a $20 gas fee destroys the economic utility of the transaction.

This is why the $XDC Network has emerged as the preferred rails for the Liqi ecosystem. $XDC was designed specifically for enterprise and institutional use cases, focusing on pillars that retail-centric chains often ignore.

The selection of the $XDC Network as the primary infrastructure for the Liqi ecosystem is driven by a focus on enterprise utility over retail speculation. Unlike general-purpose chains, $XDC addresses the specific friction points of institutional finance, starting with ISO 20022 compliance.

By aligning with this global messaging standard, the network ensures seamless interoperability with legacy banking systems like Swift, effectively bridging the gap between traditional ledgers and the blockchain.

This is reinforced by deterministic finality, in regulated credit markets where probabilistic settlement creates unacceptable risk, $XDC offers the certainty that transactions are irreversible within seconds. Finally, the network provides strict cost predictability.

For a high-volume issuer like Liqi managing hundreds of credit notes, the ability to forecast gas fees to the fraction of a cent is not merely a feature, it is a fundamental requirement for protecting operational margins.

Diego Consimo, Head of LATAM at $XDC Network, puts it bluntly:

“Our partnership with Liqi highlights the strategic role of the $XDC Network in delivering institutional-grade blockchain infrastructure for real-world asset issuance. Seeing issuance volumes grow at this pace reinforces our mission to transform how institutions in Brazil and Latin America access cutting-edge technology with security, efficiency, and full alignment with international standards.”

The Shift from Pilots to Scale in Emerging Markets

The Liqi-$XDC success story highlights a broader trend, emerging markets are leapfrogging the West in blockchain adoption. Much like mobile payments bypassed traditional credit cards in many parts of the world, tokenization is bypassing the fragmented and slow settlement systems of traditional capital markets in LATAM.

For emerging markets, the RWA value proposition is two-fold. It democratizes access to institutional-grade yields for smaller investors and allows local companies to bypass expensive domestic banking by tapping into global on-chain liquidity.

As Liqi and $XDC approach their US$ 500 million target, they are effectively building a liquidity bridge that connects Brazilian credit to international capital. This success serves as more than a local milestone; it establishes a replicable blueprint for financial modernization across Indonesia, India, and Africa.

The Institutional Requirements

The institutional world operates on a vastly different playbook than the permissionless DeFi sector. For an asset manager to deploy capital at scale, the infrastructure must prioritize accountability over anonymity, requiring Identity and KYC verification for all participants, full auditability for regulatory oversight, and recoverability mechanisms to address defaults or lost access. In this context, compliance safeguards are not optional add-ons; they are the fundamental prerequisites for moving millions on-chain.

The collaboration between Liqi and $XDC succeeds because it addresses these unsexy requirements head-on. It combines the agility of a fintech leader with the industrial strength of a blockchain built for trade finance.

The Structural Shift is Permanent

As we look toward the remainder of 2026, the narrative around RWAs will likely center on interoperability. With the US$ 500 million milestone in sight, the next challenge will be connecting these tokenized Brazilian assets to global DeFi protocols and institutional liquidity pools in London, New York, and Singapore.

The work being done by Liqi and $XDC suggests that the great tokenization is no longer a theory. It is happening in the credit markets of Sao Paulo and the digital ledgers of the $XDC Network.

Conclusion

Tokenization is not a trend, it is a structural upgrade to the global financial system. Brazil has shown the world that with the right regulatory climate and the right technical infrastructure, the benefits of blockchain can be harvested today, not in some distant future.

The US$ 100 million milestone is a victory of pragmatism over hype. It proves that when you focus on utility, cost-efficiency, and institutional standards, the market will follow. For the $XDC Network and Liqi, the path to $500 million is not just about growth; it’s about defining the new standard for how the world’s wealth is moved, managed, and measured.

The post Why Brazil and $XDC Network Are Winning the RWA Race appeared first on BeInCrypto.

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