Developers Forum for XinFin XDC Network: Tarun Sharma

How It's Tokenized | Liqi Brazil

Tarun Sharma — Tue, 12 May 2026 12:24:42 +0000

From Brazilian credit assets to on-chain visibility: LIQI, XDC, and TradeFi.Network

How LIQI Digital Assets Built the Infrastructure That Makes Brazilian Credit Flow and Why XDC Network Is the Settlement Layer Underneath It All

Brazil is becoming one of the more interesting markets to watch in tokenized credit. Not because “tokenization” sounds modern. But because some players are actually rebuilding the infrastructure underneath working capital, receivables, and credit distribution in a way that looks operationally meaningful.

One of the clearest examples is LIQI Digital Assets.

A useful way to understand LIQI is to start with a real transaction

Kavak , one of Latin America’s largest used-car marketplaces, needed working capital for its Brazilian operations. It had assets: car inventory, trade receivables, and commercial notes. What it did not have was a fast and efficient path to the investors willing to fund them.

Under a more traditional route, this kind of financing would typically involve multiple layers: fund setup, regulatory filing, custody, distribution delays, and the administrative overhead that comes with each of them.

In that specific operation, Daniel Coquieri, CEO of LIQI, confirmed the transaction delivered 60% lower infrastructure costs versus the traditional approach, while also enabling smaller ticket sizes and broader investor access.

How a real Brazilian credit transaction was tokenized through LIQI

LIQI is not best understood as a fund manager. And it is not best understood as a bank. It is better understood as infrastructure between originators and capital.

Founded in São Paulo in 2021, LIQI has positioned itself around improving efficiency in capital market processes. By early 2026, LIQI had reached BRL 1.2 billion in cumulative tokenized operations, including BRL 600 million in the first two months of 2026 alone, with a stated goal of exceeding BRL 5 billion across the year. Those numbers matter, but even more important is what they suggest: this is no longer just an experiment in issuing one tokenized asset. It is an infrastructure stack being used repeatedly in live credit workflows.

What makes the LIQI story more compelling is that the buildout happened in layers.

First came TIDC (Tokenized Investment in Credit Rights), described as an automated securitization and settlement protocol. Then came the first tokenized receivables certificate with Kavak. Then Brazil’s first FIDC (Credit Rights Investment Fund) investing in tokenized securities. Then the introduction of Liqi Securitizadora, giving the company a licensed in-house issuance stack across multiple instruments such as CRs, CRIs, CRAs, and debentures.

Seen together, these milestones tell a more important story than a single transaction could. By the time LIQI partnered with XDC Network in 2025, it was not just “starting tokenization.” It was scaling a machine that had already been built and tested through successive infrastructure layers.

How LIQI built its credit tokenization stack, milestone by milestone

The business problem underneath this is straightforward. A company can complete a sale, ship goods, and raise an invoice, yet still wait weeks for cash to arrive. Traditional structures such as FIDCs help bridge that gap, but they also bring friction: setup time, fund size thresholds, manual reconciliation, and limited visibility outside the immediate deal structure.

LIQI’s TIDC model is interesting because it appears to reduce that operational drag without removing the regulated framework underneath the issuance. What makes the model more interesting is that the compliance framework remains, while the repetitive administrative layer around it becomes more automated. That is a much more serious institutional proposition than simply saying an asset was “put on-chain.”

From a market-structure point of view, the capital flow is where the story becomes much more relevant. A company brings receivables or other debt assets. LIQI structures the instrument under Brazilian securities law. The instrument is issued digitally on XDC Network. Investors subscribe. From there, payments, reporting, compliance checkpoints, and lifecycle events can be tracked with more automation and more consistency.

This is where XDC’s role becomes important

The value of XDC in this flow is not abstract. It is practical: low-cost settlement, fast finality, on-chain auditability, and alignment with frameworks like ISO 20022 and MLETR. That makes it much more relevant to institutional credit and trade-finance infrastructure than a generic blockchain narrative. In this stack, XDC is not the headline for its own sake. It is the settlement layer that allows the workflow to run more efficiently.

The end-to-end capital flow of tokenized credit on XDC Network

What TradeFi.Network Makes Visible on XDC

What matters most here is not only that LIQI is issuing tokenized credit. What matters is that this activity is becoming visible, structured, and discoverable on XDC Network.

That is where TradeFi.Network becomes important.

LIQI shows what real-world tokenization infrastructure can look like in practice: regulated credit instruments, institutional workflows, and on-chain lifecycle management. XDC provides the settlement layer that makes this possible. But without a visibility layer, much of that activity would still remain buried inside issuer announcements, isolated APIs, and fragmented deal updates.

TradeFi.Network helps bridge that gap.

It acts as a data and discovery layer for real-world asset activity on XDC, making issuer activity more legible to investors, institutions, builders, and ecosystem participants. Instead of only hearing that tokenization is happening, users can begin to see it in a more structured way: which issuers are active, what types of assets are live, how value is distributed, and how the ecosystem is evolving over time.

LIQI Brazil alone currently shows $295.8 million in tokenized value across 1,824 individual active assets on TradeFi.Network, sourced directly via LIQI’s API. That number is not a fund size. It is the output of automated settlement infrastructure running at scale.

That is an important shift. For tokenized private markets to attract broader institutional attention, issuance alone is not enough. Markets also need discoverability, comparability, and transparency. That is the role TradeFi.Network is designed to play for XDC’s RWA ecosystem.

In that sense, LIQI is not just the company being profiled here. It is also an example of a broader point: real credit activity is happening on XDC, and TradeFi.Network is helping make that activity visible.

What TradeFi.Network makes visible on XDC

That is why I think this is ultimately a working-capital story first and a blockchain story second.

The real signal is not that tokenization exists. The real signal is that a regulated credit workflow is being rebuilt in a way that can reduce friction, improve operational efficiency, and make asset activity more legible to the market.

LIQI is important because it provides a live example of that. XDC is important because it provides the settlement infrastructure underneath it. TradeFi.Network is important because it provides the visibility layer that helps the market actually understand what is happening on-chain.

That combination is far more interesting than a standalone tokenization announcement.

And it points to something bigger: as more issuers, asset classes, and structured credit flows come on-chain, the value of the ecosystem will increasingly depend not only on who can issue, but also on who can make that activity visible, discoverable, and understandable.

That is where I think the next phase of on-chain real-world assets becomes much more compelling.

LIQI is one example, not the whole story. There is more being built across XDC, and more tokenized structures worth examining closely.

Sources

[1] Bitcoin.com News / Oliveira Trust RI — Kavak × LIQI: 60% infrastructure cost savings for that specific operation, smaller ticket sizes, commercial notes structure, and Oliveira Trust as guarantor agent.

[2] LIQI official website / company materials — Company timeline and product positioning, including Apr 2021 company background, Oct 2023 TIDC, Jun 2024 Kavak, Jul 2024 first FIDC investing in tokenized securities, and Feb 2025 Liqi Securitizadora context.

[3] LIQI press releases / company updates — BRL 1.2B cumulative operations, BRL 600M in the first two months of 2026, BRL 5B stated 2026 goal, Banco ABC Brasil BRL 300M TIDC deal, and Liqi Securitizadora / CVM S2 registration context.

[4] XDC Network official materials — XDC settlement characteristics, enterprise positioning, ISO 20022 context, and MLETR-related positioning for the LIQI use case.

XDC Network: Network overview

[5] TradeFi.Network — Live RWA dashboard on XDC Network; LIQI Brazil issuer data sourced via LIQI API integration.

TradeFi.Network RWA dashboard

Integrating x402 Micropayments on the XDC Blockchain

Tarun Sharma — Fri, 16 May 2025 13:47:13 +0000

Decoding x402 – The Missing Link in Micropayments

You find an insightful article on Medium or Substack. The catch? It’s behind a paywall. You decide to subscribe for that one article. A few months later, you discover you’ve been silently charged every month — for content you barely read.

Now flip the coin. As a content creator, you've probably noticed users abandoning your platform just because they don’t want to go through the hassle of creating accounts, adding cards, and managing subscriptions. The friction is real — and it kills micro-monetization opportunities.

This is where x402 steps in — a reimagination of the forgotten HTTP status code 402: "Payment Required". Originally reserved for digital payment systems, it was never standardized — until now.

What is x402?
x402 is an open standard for micropayments, purpose-built for APIs. It lets service providers charge per request using cryptocurrency, while remaining fully decentralized and non-custodial.

It bridges a long-missing gap in the web monetization stack — allowing developers to get paid without relying on intermediaries like Stripe or subscription platforms.

How it works:

API Creator sets a price and preferred token (e.g. USDC) for an endpoint.
API Consumer hits the endpoint → gets a 402 Payment Required response, with payment metadata.
The consumer generates a pre-signed blockchain transaction fulfilling the payment request.
This signed payload is returned to the provider.
The API creator forwards it to a facilitator service, which verifies transaction validity and signature, broadcasts it to the blockchain, on confirmation, unlocks the actual API response.

A Real-World Example: The Oracle Problem

At Fathom Protocol, we operate a price oracle ingesting data from platforms like CoinGecko, CoinMarketCap, and CryptoCompare. Each of these:

Requires subscription tiers
Involves account setup and billing credentials
Mandates secure handling of API keys

Now imagine a world where these providers support x402 micropayments:

💳 No subscriptions
🧾 No accounts
🔐 No API key management
💵 Pay-as-you-go in stablecoins
🔄 Stateless, trust-minimized integration

This reduces complexity, avoids vendor lock-in, and unlocks composability across DeFi and Web3.

x402 on XDC — Bringing It to Life

While x402 was originally implemented on Base (an L2 by Coinbase), its architecture is blockchain-agnostic.

Given XDC’s low fees, enterprise-grade reliability, and stablecoin ecosystem, we extended support for XDC Mainnet using USDC.e — the bridged version of USDC on XDC.

Repository:
🔗 Tarunshrma/xdc402 – XDC Integration Branch

⚠️ Note: This integration is experimental. It has not been audited and is not production-ready. Use at your own risk.

Limitations and Open Questions

While x402 is a promising standard, there are some challenges to consider:

🔍 Anonymity vs. Identity

x402 is designed to preserve privacy — no email, no account, no login.
But what if an API provider needs to perform KYC, restrict access by region, or enforce rate limits per user?
Today, this is unsolved. Options include:
Using wallet-based allowlists (e.g. only accept payments from known addresses).
Issuing off-chain JWT tokens post-payment (non-standard, needs customization).
Combining x402 with identity layers like Verifiable Credentials (VCs) or ENS profile checks.

🧾 No Refund or Dispute Mechanism

Once the transaction is broadcast, there's no native refund flow.
Malicious actors could impersonate APIs and steal payments — requiring API consumers to whitelist trusted providers.

🔁 Lack of Retry Semantics

If a user accidentally underpays or times out mid-call, they must start the entire flow again — unlike subscription models that retry on failure.

🧱 Smart Contract Cost

On high-fee chains like Ethereum Mainnet, transaction fees may dwarf the micropayment itself — making it impractical.
XDC’s low gas fees solve this for us — one of the key reasons we chose it.

The Road Ahead

To accelerate x402 adoption:

API creators should explore adding 402 fallback flows in their stack.
Integrate Modular Account Abstraction for Advanced Access Rules
Facilitators can evolve into gasless relayers or session managers.
Protocols like Farcaster, Lens, or DID registries can offer opt-in identity layers for permissioned APIs.

As more applications in Web3 move toward modular monetization, x402 offers a powerful primitive — the “HTTP of blockchain-native payments.”

Final Thoughts

If you’re building APIs, running oracles, or serving Web3 infrastructure — x402 deserves your attention. Combined with XDC, it brings micropayments to production-grade ecosystems.

We’ll continue refining the implementation, and we invite contributors to explore, fork, and experiment with:

🔗 https://github.com/Tarunshrma/xdc402

📩 Feedback?
Let’s collaborate to make x402 a reliable standard — starting with XDC.
Feel free to open issues, propose integrations, or connect via GitHub.