Nearly $717M in RWAs on XDC, with $345M Concentrated in VERT Capital Private Credit
On-chain data from TradeFi.Network shows tokenized real-world assets (RWAs) on the XDC Network have reached $717 million. Roughly $345.3 million — about 48% of XDC’s total RWA — is deployed through VERT Capital in USDC-denominated private-credit pools. The concentration signals institutional private credit moving on-chain at scale, favoring fiat-backed settlement (USDC) and long-duration yield-bearing instruments over tokenized treasuries or commodities. Drivers cited for XDC’s adoption include low transaction costs, predictable finality, and permission-aware infrastructure suited to institutional needs. TradeFi’s data suggests fewer, larger pools (not many small issuers) are deploying meaningful capital without retail incentives, implying certain blockchains may become preferred settlement layers for institutional balance sheets. Key figures: $717M total RWAs on XDC, $345.3M via VERT Capital (48%), and broad private-credit market context (private credit >$1.6 trillion globally).
Bullish
Concentration of $717M in RWAs on XDC, with nearly half via VERT Capital, is bullish for several trading reasons. First, institutional capital inflows (especially in USDC) increase on-chain liquidity and legitimacy for settlement-layer networks, which can attract more institutional issuers and intermediaries over time. Second, private-credit pools are long-duration and yield-bearing; their tokenization shifts some institutional balance-sheet activity on-chain, likely increasing predictable transaction volumes and demand for USDC and the underlying chain’s throughput. Third, fewer large pools deploying meaningful capital suggests durable, stickier demand compared with incentive-driven retail load-ins, which is constructive for market stability. Short-term impact: limited direct price action for major tokens (e.g., XDC native token not directly mentioned) but positive sentiment for infrastructure tokens and stablecoin demand; traders may see reduced volatility in RWA-related instruments and higher stablecoin on-chain flows. Long-term impact: if XDC continues to capture institutional settlement activity, this could lead to sustained network fee revenues, deeper liquidity for on-chain credit markets, and broader adoption of tokenized RWAs — supportive of a bullish narrative for infrastructure-layer assets and stablecoins. Caveats: concentration risk (single allocator dominance) creates counterparty/operational risk — negative events tied to VERT Capital or USDC could produce sharp localized sell pressure or liquidity dislocation. Past parallels: institutional custody and stablecoin-driven flows (e.g., USDC usage in DeFi lending growth) have historically boosted on-chain activity and token utility, while concentration episodes (e.g., exposure to a single counterparty) have amplified downside when that counterparty faced issues. Traders should monitor on-chain flows, VERT Capital disclosures, USDC regulatory developments, and XDC network metrics to gauge evolving risk-reward.