Three major players in Brazil’s cryptocurrency market—Bitso, Mercado Bitcoin, and Foxbit—have teamed up to launch BRL1, a stablecoin pegged to the Brazilian real. This new digital asset aims to streamline transactions between local exchanges. In addition, it will reduce reliance on traditional fiat currencies. The stablecoin will be issued on Ethereum and Polygon, with liquidity provided by Cainvest, a leading Brazilian liquidity provider.
BRL1 is following the trend of other stablecoins that are not linked to the US dollar but to the national currency. Such digital assets are becoming popular as nations search for solutions to incorporate blockchain technology into their national economies. In Brazil, BRL1 is planning to solve the issues that traders have when exchanging digital coins for fiat money and the opposite.
It is planned to be released later this year, and its primary purpose will be to accelerate and reduce the cost of transactions between various Brazilian exchanges. When adopting BRL1, users can purchase and trade cryptocurrencies through methods other than the banking rails. This could greatly enhance the functioning of crypto trading in Brazil, where the activity is still developing intensively.
BRL1 Stablecoin Plans 100 Million Market Cap in First Year
Cainvest will handle the working capital for BRL1’s trading pairs with BTC and ETH in its operations. The consortium plans to launch other token pairs in the future. Speaking to Mercado Bitcoin’s Fabricio Tota, New Business Director, BRL1 could connect the crypto industry with more conventional banking models. He said, “Real cryptocurrency, backed up by key market participants, is the next level of progress for cryptocurrencies.”
On the other hand, BRL1 will be designed mainly for ordinary customers in the crypto space. It will target Brazilian companies that offer payment services. Many companies have already intended to adopt stablecoin to improve their operations.
The Brazilian treasury bonds, which will underlie BRL1, will support the value. Fireblocks will be responsible for the tokenisation and custody of the stablecoin. The consortium is also considering sharing some of the yield from these bonds with BRL1 holders, thereby generating the stablecoin yield.
Initially, 10 million BRL1 stablecoins will be issued, with plans to reach a market cap of 100 million in the first year of operation. This marks an important milestone in Brazil’s crypto space. As a result of this development, it will position BRL1 as a key player in the country’s financial future.
