.png){kind=logo}
Three leading cryptocurrency exchanges in Brazil- Bitso, Mercado Bitcoin, and Foxbit, have jointly announced the creation of the brl1, a new stablecoin created to be backed by the Brazilian real. This is a landmark in the market as it creates variety since the market was once associated with US Dollars via stablecoins.
The brl1 stablecoin was designed as a way to make trading easier between different local exchanges and generally make trading of cryptocurrencies easier without the use of fiat money.
The stablecoin will be issued on both the Ethereum and Polygon networks, broadening its accessibility and integration into the global crypto ecosystem. This strategic choice optimizes on the security, scalability, and transaction speed of these platforms and makes it easier to navigate by the users.
This partnership involves Cainvest Bank, which will act as a primary market maker for brl1, integrating trading pairs involving large cryptocurrencies such as BTC and ETH. At first, 10 million reales of this brl1 will be floated to the market, and the goal is to increase the market capitalization to 100 million within the year. It is highly demonstrative of the confidence that HSBC and the other partners of the consortium have in the future growth of brl1 and the level of investor interest that it will generate.
Fabricio Tota, Mercado Bitcoin’s director of new business, stressed that adopting a real-backed digital currency has huge benefits. As such, brl1 has sought to minimize the challenges usually associated with transactions between cryptocurrencies and the conventional financial industry in order to bring the technology into common use in the financial markets.
Moreover, Tota indicated that the stablecoin would not only facilitate individual transactions but also serve the needs of companies providing payment services, which have already expressed interest in integrating brl1 into their operations.
Fireblocks, a renowned player in digital asset custody, will provide tokenization and custody services for the brl1 stablecoin, ensuring top-tier security for its holders. Additionally, the backing of Brazilian treasury bonds adds another layer of stability and trust, distinguishing brl1 from other cryptocurrencies.
Holders of brl1 might also benefit from yields generated from these bonds, as the consortium considers sharing a portion of these profits, making brl1 a potentially yield-bearing asset.
