Brazil has recently tokenized R$5.4 5.4billion of real-world assets, more than any other Latin American country. Surprisingly, only three blockchains cover 93 per cent of the latter market. According to the RWA Monitor data published in January 2026, the XDC Network has R$2.68, the XRP Ledger has R$1.7, and Polygon has R$506 million. Why did Brazilian giant institutions—Banco Itaú, VERT Capital, and Mercado Bitcoin—choose these three networks? Each blockchain solved a unique problem. Why Brazil Became Latin America's RWA Hub The United States has been debating whether cryptocurrency is a security, while Europe is making strides towards MiCA regulation, but Brazil, which is building an effective infrastructure, has gone largely unnoticed. The numbers speak for themselves: Brazil received $318.8bn in cryptocurrency valuation from mid-2024 to mid-2025, making the country the fifth on the Chainalysis Index of crypto adoption. More significantly, institutional trading of over $10 million drove most of this growth, indicating that the volume was not fueled by retail speculation. The Regulatory Foundation The Brazilian securities regulator (CVM) passed Resolutions 60 and 160 to provide clear pathways for tokenized securities. In November of the same year, 2025, the Central Bank published three resolutions that implemented the 2022 Virtual Asset Law, making Brazil one of the largest crypto regulatory frameworks in the world. Firms have up to February 2026 to license the new rules - offer a 9-month grace - and the regulations are already driving billions in institutional adoption. The result is an investment sandbox where pension funds, large financial institutions, and corporations feel free to move real assets to public blockchains. It involves Banco Itau corporate bonds, agribusiness receivables of over $1 trillion per year, and real estate credit, all in full compliance with CVM laws. The Three Networks That Dominate Brazil's RWA Market XDC Network – R$2.68 Billion The XDC Network is a public Layer 1 blockchain designed to support institutional applications such as RWA tokenization, cross-border payments, and DeFi. Why institutions chose XDC: Two-second settlement, near-zero fees, EVM compatibility
Integration of ISO 20022 (the same standard used by SWIFT)
MLETR compliance for cross-border legal recognition of electronic trade documents
Private subnet capability for confidential institutional transactions Two-second settlement, near-zero fees, EVM compatibility Integration of ISO 20022 (the same standard used by SWIFT) MLETR compliance for cross-border legal recognition of electronic trade documents Private subnet capability for confidential institutional transactions XDC has built partnerships with VERT Capital, Liqi Digital Assets, Mercado Bitcoin, Foxbit, C9Tech (C9Chain), Better Use Blockchain, Fact Finance, Anyflow, Khiza, Speck Finance, and government data processor SERPRO. The network enabled issuances from UISA, Pine, Mottu, Banco Itaú, Banco ABC, Banco BV, and Ascensus Group—totaling 160 tokenized assets and R$2.15 billion in capital raised —all in full compliance with CVM Resolutions 60 and 160. XRP Ledger – R$1.7 Billion The XRP Ledger allows organizations to swiftly and effectively transfer capital across borders, owing to its speed, low transaction costs, and built-in liquidity mechanisms. Why institutions choose XRPL: 3-5 second settlement, transactions at $ 0.0002
Native decentralized exchange (built into the protocol)
RLUSD stablecoin reached $ 1.2 billion in circulation by 2025, providing instant liquidity 3-5 second settlement, transactions at $ 0.0002 Native decentralized exchange (built into the protocol) RLUSD stablecoin reached $ 1.2 billion in circulation by 2025, providing instant liquidity In 2025, VERT Capital deployed over $ 170m in pension-backed receivables on XRPL. Mercado Bitcoin plans to issue an additional $ 200 million in tokenized products. Both participate in CVM's regulatory sandbox, enabling rapid iteration. Travelex Bank still uses the network to handle international currency transactions. Through Archax, a UK FCA-regulated exchange, and HSBC, which uses the network for tokenization of money market funds and real estate, Ripple has expanded the reach of XRPL outside of the region. The August 2025 SEC resolution also eliminated U.S. regulatory uncertainty, enabling simultaneous adoption in both markets. Polygon—R$ 506 Million Polygon has taken a different path in the tokenization race. Rather than competing to issue the most assets, it built the payment infrastructure through which tokenized assets actually trade and settle. Why institutions chose Polygon: Owns the rails over which tokenized assets trade
Processes $30-50 billion in monthly volume globally
Has 332 tokenized assets—a large diverse asset count Owns the rails over which tokenized assets trade Processes $30-50 billion in monthly volume globally Has 332 tokenized assets—a large diverse asset count In March 2025, Mercado Bitcoin collaborated with Polygon to use its stablecoin infrastructure. The thesis is that tokenized assets need efficient trading mechanisms to be valuable, and Polygon already controls the payment layer. In October 2025, BlackRock deployed approximately $ 500M via its BUIDL tokenized fund on Polygon. Polygon's AggLayer technology allows tokenized assets to move across blockchains, addressing fragmentation. What Happens in the Next 18 Months The Central Bank regulation of the stablecoin in Brazil will be fully applicable in mid-2026. The tokenization platform created by B3 will be implemented. The initial wave of tokenized FIAGROs will rise to maturity so that the investors reap real returns. At this point, the market will either confirm the infrastructural decisions of institutions- or force them to switch to other rails. XDC's thesis: Structured credit will be among the dominant tokenized asset classes, and ISO 20022 integration will become mandatory for institutional adoption. As long as agribusiness and corporate receivables increase faster than other asset types, interoperability with legacy systems will remain the most critical parameter. Outside Brazil, XDC has international partnerships with Circle, Deutsche Telekom, BlackRock (through Libre), Archax, Securitize, Tokeny, Clearpool, Plume, InvestaX, Zoth, and Nomyx. XRP Ledger's thesis: The XRP Ledger assumes that liquidity is the most important. With secondary trading being larger than primary issuance volumes, like in the case of traditional finance, it is most beneficial to create the largest stablecoin reserves and the most widespread native decentralized exchange capabilities rather than to have specialized features. Polygon's thesis: According to Polygon, assets will inexorably need to be cross-chained. In the event of Brazilian receivables being traded against Mexican real estate and Kenyan carbon credits, payment infrastructure and interoperability layers will be more valuable than hosting platforms. The Real Test Starts Now Brazil did not chance upon tokenization. It deliberately created the right environment, including progressive regulation, agribusiness as a major sector requiring private investment, and an already highly active global fintech ecosystem. The example of Brazil shows that tokenization is best based on actual economic activity rather than ideology. Agribusiness requires access to capital at low cost and fast. Pension funds seek yield. Banks pursue efficiency. The infrastructure on the ground today was chosen because it solved those problems. Whether it scales to match Brazil's ambition is the question 2026 will answer.

The is an opinion piece based on the author’s POV and does not necessarily reflect the views of HackerNoon.

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Why Brazil's Biggest Institutions Chose XDC, XRP Ledger, and Polygon for Tokenization

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