Brazil-Based Companies Team Up to Launch Stablecoin

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Bitso, Mercado Bitcoin, and Foxbit have collaborated to launch brl1, a new stablecoin tied to the Brazilian real. This token will be issued on the Ethereum and Polygon blockchains, with liquidity for BTC and ETH pairs being supplied by Cainvest, which will also facilitate the development of additional trading markets in the future.

The stable token landscape is evolving beyond its initial ties to the U.S. dollar as countries worldwide aim to leverage stablecoin technology for their local currencies. The partnership between these three major players in Brazil’s cryptocurrency sector marks the introduction of brl1, positioning it as one of the pioneering real-pegged stablecoins aimed at tapping into growing digital currency ecosystem.

Expected to hit the market later this year, brl1 is set to streamline transactions across local exchanges, enabling cryptocurrency trades without relying on traditional fiat systems. Cainvest, a key liquidity provider in South America country, will manage the trading pairs of brl1 against BTC and ETH, as well as support additional tokens in the future.

Fabricio Tota, the new business director at Mercado Bitcoin, emphasized that brl1 aims to bridge the gap between the crypto industry and conventional banking. He noted, “By introducing a real cryptocurrency backed by significant market players, we are advancing towards making this accessible to everyday users.”

Moreover, Tota mentioned that brl1 could also appeal to companies offering payment solutions in the country, with several already expressing interest in the initiative.

The new token will be supported by treasury bonds, with Fireblocks handling tokenization and custody for the consortium. Given that these bonds provide yields, the consortium plans to share part of this benefit with brl1 holders, potentially transforming it into a yield-bearing stablecoin.

Initially, the consortium will issue 10 million reais worth of brl1, with an ambitious target of reaching a market capitalization of 100 million reais within its first year of operation.