Leading cryptocurrency exchanges in Brazil have joined forces to create a stablecoin pegged to the Brazilian real. Bitso, Foxbit, Mercado Bitcoin (MB), and Cainvest announced their consortium on Monday, October 7.
The group aims to launch BRL1, a real-backed stablecoin, on major blockchain networks this year. The consortium expects BRL1 to reach a circulation of R$100 ($18) million within a year.
They plan to work alongside other initiatives, such as Drex, Brazil’s digital real project. This collaboration marks a significant step for the Brazilian crypto ecosystem, despite the exchanges being natural competitors.
Fabrício Tota, Director of New Business at Mercado Bitcoin, emphasized the importance of cooperation. He stated that developing Brazil’s digital asset market is their priority.
Charles Aboulafia, CEO of Cainvest, expressed commitment to building infrastructure for the Brazilian crypto market. Cainvest, a lesser-known consortium member, leads financial services for banking institutions in the Cayman Islands.
Major Brazilian Exchanges Form Consortium for National Stablecoin. (Photo Internet reproduction)
It represents 60% of the local banking market. The company will provide liquidity for Bitcoin and Ethereum pairs listed against BRL1 on the three exchanges.
BRL1 Stablecoin
Ricardo Dantas, CEO of Foxbit, described the joint creation of BRL1 as a natural step. He noted the challenging environment for new technologies, citing friction between crypto and traditional finance.
In addition, the stablecoin aims to bridge this gap and facilitate smoother transactions. BRL1 will initially launch on the Ethereum and Polygon networks.
It will be fully backed by Brazilian reais and government bonds, with an initial issuance of R$10 million. This structure provides an extra layer of security and stability for the stablecoin.
Barbara Espir, Name‘s country manager in Brazil, highlighted the potential of BRL1. She emphasized its ability to promote cheaper, faster, and more transparent local and international transactions.
The consortium has partnered with Fireblocks for tokenization and custody technology. Michael Shaulov, CEO and co-founder of Fireblocks, expressed pride in supporting BRL1’s creation.
The law firm Pinheiro Neto Advogados will serve as a legal advisor, ensuring regulatory compliance throughout the project. This collaboration showcases the growing maturity and innovation in Brazil’s cryptocurrency market.
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