Liqi and XDC Expand Tokenization Target to $2 Billion as Brazil Regulators Eye DLT

Brazil's securities watchdog, the CVM, formed a Tokenization Working Group in July to explore registration, custody, trading and settlement of securities on distributed-ledger technology.

The group is also charged with proposing a trial regulatory framework for tokenized securities, embedding tokenization firmly in the regulator's plan to modernise the country's capital markets.

In parallel, Brazilian tokenization platform Liqi Digital Assets and XDC Network renewed their alliance for another two years, lifting the total targeted issuance from $500 million to $2 billion by 2028.

The renewed pact covers the original $500 million, which the companies say has already been fulfilled, plus an additional $1.5 billion in planned issuance.

Liqi Reached Its Original $500 Million Target Nine Months Early

The upscaled target follows faster-than-expected deployment under the firms' first agreement.

Liqi and XDC originally signed their deal in April 2025, aiming for up to $500 million in real-world assets over 24 months. According to the companies, that goal was hit in roughly 15 months, nine months ahead of schedule.

Liqi says this makes it the biggest issuer of yield-bearing assets on XDC. The firm reports that approximately $835 million have now been tokenised across 386 series and 60 asset pools, supported by 378 smart contracts deployed on XDC mainnet.

Daniel Coquieri, CEO and co-founder of Liqi Digital Assets, said the initial target was set when institutional demand was harder to gauge.

“We signed the first agreement with a target that looked aggressive: half a billion dollars in two years. We delivered in fifteen months, because Brazil’s structured credit market was already there – what was missing was the infrastructure. We tripled the commitment because demand tripled. What we are building is not a blockchain pilot: it is the rail that regulated banks and originators run credit through, with auditable collateral and on-chain settlement.”

Under the extended agreement, XDC will remain Liqi's exclusive blockchain for RWA issuance. The companies plan to move into additional structured credit types, trade finance, and receivables from larger originators.

Tokenized Credit Is a Growing Part of the RWA Market

The credit emphasis is important because the RWA market is expanding beyond the tokenised US Treasury products that drove much of its early institutional growth.

RWA.xyz currently tracks $7.82 billion of distributed tokenised credit and another $37.73 billion of represented credit assets across more than 2,500 assets. The category includes corporate credit, structured credit, specialty finance and other non-sovereign debt forms.

Liqi's activity falls within this segment. According to the company, assets already issued on XDC include trade receivables, payroll-deductible loans, debentures, corporate credit and Brazilian receivables certificates. Issuances have involved institutions including Itaú BBA, Banco BV, Banco ABC Brasil and Creditas.

Diego Consimo, Head of LATAM at XDC Network, said:

“These are structured credit operations, originated within the regulated financial market, that now use blockchain as an effective part of their infrastructure.”

For XDC, locking in further issuance also bolsters its RWA sector exposure at a time when competition among blockchains for tokenised assets is intensifying.

Ethereum currently leads distributed RWA value with around $17.6 billion, followed by BNB Chain, Solana and Stellar, according to RWA.xyz.

Brazil Brings Tokenization Into Capital Markets

Brazilian regulators are also sharpening their focus on how tokenised assets should function within the existing financial system.

The CVM's new working group includes representatives from 14 areas of the regulator and has started discussions with organisations including ANBIMA, ABCripto, ABToken and other capital-market participants. Its remit covers custody, registration, trading and settlement using DLT systems.

Brazil's Central Bank has separately explored tokenised finance through Drex, a DLT-based environment designed for regulated financial intermediaries and programmable financial services.

Commercial issuance and regulatory development are therefore beginning to converge. Credit instruments can already be created and settled via blockchain systems, while regulators are determining how those systems should interact with established securities-market rules.

The Liqi-XDC deal provides a sign of the volumes that could follow if institutional adoption continues. However, the $2 billion commitment remains a forward target rather than completed issuance, with $1.5 billion still scheduled to be brought on-chain over the next two years.

For Brazil’s tokenisation market, reaching that target would show that tokenised credit can progress from relatively small deployments into repeat issuance involving regulated banks, originators and established financial instruments.