The Rome Protocol and Kitchen have joined the forces to expedite the adoption of blockchain-based financial solutions in Latin America.
The partnership will focus on the real-world asset tooling and cross-chain payment finance, aimed at creating new liquidity opportunities for businesses, developers and financial institutions, Crypto.NUS can report specifically.
An example of this can be seen in Mexico, where people are searching for real estate tokennails to enable differential ownership, Anil Kumar, CEO of Rome Protocol, told Crypto.news. Meanwhile, tokens are using agricultural commodities as collateral for the funding of Argentina farm.
RWA Tokenization is a process of converting physical or traditional financial assets, such as immovable property or goods, which can be traded on the blockchain network. This allows investors to purchase and sell the excerpts of the assets more efficiently, increase access and liquidity.
Solana (Sol) is a popular ecosystem for this, but it is only growing in popularity, said Kitchen co-founder Alex Cavello.
“Solana is currently one of the most popular and highly liquid ecosystems with incredible traction on-chains. However, users in Latam and other emerging markets are not associated with the Solana ecosystem, ”Cavelro told Crypto.news. “With Rome’s interoperability, we can install new avenues for liquidity between solana and emerging market users through kitchen.”
Partnership RWA will make assets more accessible to several blockchain ecosystems, which will join the Rome Protocol’s Interoperability layer with blockchain infrastructure of kitchen.
The Rome protocol, which improves blockchain interoperability using Solan, will provide a framework for issuing RWA, verification and trading. Kitchen is a layer 1 blockchain designed for emerging markets. This will contribute to its Payfi module, which facilitates blockchain-based payments, lending and financial services.
Partnership profit
The partnership will streamline compliance, increase cross-chain liquidity, and support adopting both institutional and retail.
Kiichain’s RWAS will be reflected as ERC tokens for widespread defi access, while on-chain verification regulatory ensures compliance. Cavalo said that financial products, stabeloin-powered yield vaults, and real estate would be preferred.
“They are the highest desired products that cannot be accessed without the benefits of tokens,” Cavalo said.
Kumar said that the partnership would establish liquidity by enabling the cross-chain asset movement between Atherium (ETH), Solan and Kitchen, reduces friction in trading. It also features partial ownership, allowing investors to buy and sell small parts of high-value assets.
“Tokening can democratizing access to real estate investments.” Kumar said.
Latum’s growing crypto market
Latin America is responsible for 9.1% of global crypto inflow in 2024 and has represented 20% of top countries in the Global Cripto Adoption Index of Channelis. This increase is powered by stablecoin transmission, providing more reliable options for inflation affected local currencies.
With blockchain adoption, the demand for token of real -world property is increasing. This allows safe verification and trading on-chain, opening new opportunities for financial institutions and retail investors without traditional banking middlemen.
Kumar said that regulatory uncertainty, limited infrastructure, and educational gaps are important obstacles for institutional adoption of RWA Toking in Latin America. While progress is being made, vague rules can prevent institutions from embracing technology completely.
Additionally, blockchain knowledge and lack of adequate infrastructure slow down to adopt massive adoption, Kumar said.
