Cusco, Peru – Blockchain platform WhiteRock, known for tokenizing real-world assets and its yield-generating USDX stablecoin, has announced a pilot program to digitize municipal bonds for Cusco, a historic city in the Peruvian Andes. The initiative aims to fund key infrastructure projects, including water systems, waste management, and tourism enhancements.
This pilot marks the beginning of WhiteRock’s broader strategy to partner with municipalities worldwide, addressing funding shortages in cities that rely on tourism and local tax revenues. Despite being a global travel hub near Machu Picchu, Cusco often struggles to secure sustainable development funds.
How WhiteRock’s Tokenization Works
By leveraging blockchain technology, WhiteRock’s tokenization model streamlines bond issuance, reduces costs, and enables global investment through fractionalization. Using its native liquidity token, $WHITE, investors can participate in municipal bond purchases with no minimum entry requirement—allowing investments ranging from as little as $1 to $100,000.
The funds raised through these tokenized bonds will support projects such as renewable energy initiatives and historic preservation efforts. WhiteRock generates revenue through issuance fees (1-2% per bond) and trading commissions.
Tourism Taxes as a Yield Mechanism
Investors will receive tradable tokens with a yield above their principal investment. The returns are backed by Cusco’s municipal revenue sources, including tourism levies, hotel taxes, and property fees. As funded projects drive increased tourism and economic activity, the city is expected to generate more revenue, facilitating bond repayments with interest.
“We’re making any asset tradable, anywhere, efficiently,” said WhiteRock co-founder Maxime Pizzolitto, highlighting the company’s ambition to expand this model to a global network of municipal partners.
As WhiteRock finalizes the regulatory framework for the Cusco pilot, its success could pave the way for broader adoption. A strong performance in Cusco may encourage other cities to explore similar blockchain-based municipal funding models, potentially accelerating WhiteRock’s global expansion.
If successful, this initiative could reshape municipal finance, allowing cities to raise capital more efficiently while providing investors with new opportunities in the blockchain-powered financial ecosystem.
