Rome Protocol and KiiChain have joined forces to speed up the adoption of blockchain-based monetary options in Latin America.
The partnership will concentrate on real-world asset tokenization and cross-chain fee finance, aiming to create new liquidity alternatives for companies, builders, and monetary establishments, crypto.information can completely report.
An instance of this may be seen in Mexico, the place individuals are exploring actual property tokenization to allow fractional possession, Anil Kumar, CEO of Rome Protocol, informed crypto.information. In the meantime, Argentina is using tokenized agricultural commodities as collateral for farm financing.
RWA tokenization is the method of changing bodily or conventional monetary property, like actual property or commodities, into digital tokens that may be traded on blockchain networks. This enables traders to purchase and promote fractions of property extra effectively, rising accessibility and liquidity.
Solana (SOL) is a well-liked ecosystem for this, however it’s solely rising in recognition, mentioned Alex Cavallero, co-founder of KiiChain.
“Solana is presently some of the in style and extremely liquid ecosystems with unimaginable traction on-chain. Nonetheless, customers in LatAm and different rising markets aren’t linked with the Solana ecosystem,” Cavallero informed crypto.information. “With Rome’s interoperability, we will set up new avenues for liquidity between Solana and rising market customers by KiiChain.”
The partnership will make RWA property extra accessible throughout a number of blockchain ecosystems by becoming a member of Rome Protocol’s interoperability layer with KiiChain’s blockchain infrastructure.
Rome Protocol, which improves blockchain interoperability utilizing Solana will present a framework for RWA issuance, verification, and buying and selling. KiiChain is a Layer 1 blockchain designed for rising markets. It can contribute its PayFi module, which facilitates blockchain-based funds, lending, and monetary providers.
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Partnership advantages
The partnership will streamline compliance, improve cross-chain liquidity, and assist each institutional and retail adoption.
KiiChain’s RWAs shall be mirrored as ERC tokens for broader DeFi entry, whereas on-chain verification ensures regulatory compliance. Cavallero mentioned that monetary merchandise, stablecoin-powered yield vaults, and actual property shall be prioritized.
“They’re the best desired merchandise that can’t be accessed with out the advantages of tokenization,” Cavallero mentioned.
The partnership will set up liquidity by enabling cross-chain asset motion between Ethereum (ETH), Solana, and KiiChain, lowering friction in buying and selling, Kumar mentioned. It additionally facilitates fractional possession, permitting traders to purchase and promote smaller parts of high-value property.
“Tokenization can democratize entry to actual property investments.” Kumar mentioned.
LATAM’s rising crypto market
Latin America has accounted for 9.1% of world crypto inflows in 2024 and representing 20% of the highest nations in Chainalysis’ International Crypto Adoption Index. This progress is pushed by stablecoin remittances, providing a extra dependable various to inflation-affected native currencies.
With blockchain adoption rising, the demand for tokenizing real-world property is rising. This enables safe verification and buying and selling on-chain, opening up new alternatives for monetary establishments and retail traders with out conventional banking intermediaries.
Regulatory uncertainty, restricted infrastructure, and academic gaps stay key limitations to institutional adoption of RWA tokenization in Latin America, Kumar mentioned. Whereas progress is being made, unclear rules can deter establishments from totally embracing the expertise.
Moreover, an absence of blockchain information and enough infrastructure slows large-scale adoption, Kumar mentioned.
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