Brazil’s largest crypto exchange platforms, Mercado Bitcoin, Foxbit, and Bitso, have collaborated to introduce BRL1, the first stablecoin pegged to the value of the Brazilian Real.

BRL1: Brazil’s First Real-Pegged Stablecoin

According to Brazilian media reports on October 8, Mercado Bitcoin, Foxbit, and Bitso are set to launch a stablecoin named BRL1. This stablecoin, pegged to the Brazilian Real, will be issued on both Ethereum and Polygon networks.

Supporting Liquidity and Trading Pairs

Digital bank Cainvest is preparing to provide liquidity for the stablecoin’s Bitcoin (BTC) and Ethereum (ETH) trading pairs listed on these exchanges. Future markets for BRL1 are also under development. The Brazilian stablecoin aims to facilitate transactions between local exchanges, allowing for cryptocurrency purchases and sales without relying on fiat-based systems.

Bridging Traditional Banking and Crypto

Fabricio Tota, Business Director at Mercado Bitcoin, stated that the main goal behind BRL1 is to bridge the gap between traditional banking institutions and the crypto industry. He hopes that BRL1 will reduce the “friction between the traditional financial system and the crypto world.”

“And when you introduce a real cryptocurrency, with the support of major players in this market, I think we are taking a few steps forward, we have a good chance of reaching this common user,” said Tota.

Backing and Transparency

BRL1’s value will be pegged to the Brazilian Real, with each BRL1 token equal to R$1. The reserves will be backed by the country’s National Treasury bonds. Charles Aboulafia, President of Cainvest, emphasized that the token’s reserves will be audited and disclosed with full transparency to its users.

Expected Release and Trading Volume

The new crypto asset will be available on exchanges later this year, with an initial supply of R$10 million held by MBPay and Nvio, payment institutions of MB and Bitso, regulated by the Central Bank of Brazil. Exchange representatives expect the stablecoin to reach a total trading volume of 100 million BRL1 within a year.

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