Brazilian Real pegged stablecoin BRL1 is now live! Will be issued on Ethereum and Polygon.

Three major cryptocurrency exchanges in Brazil, Bitso, Mercado Bitcoin, and Foxbit, recently collaborated to launch a stablecoin pegged to the Brazilian Real called brl1, aiming to enhance the convenience of local cryptocurrency trading and reduce friction between cryptocurrency exchanges and traditional financial systems. brl1 will be issued on Ethereum and Polygon, and tokenization and custody services will be provided by Fireblocks.

brl1 Aims to Reduce Friction Between Cryptocurrency and Traditional Finance

Bitso, Mercado Bitcoin, and Foxbit, among other Brazilian exchanges, have collaborated to launch brl1 stablecoin, which is pegged to the Brazilian real Reais and will be issued on the Ethereum and Polygon chains. The goal is to enhance the liquidity in the Brazilian cryptocurrency market, eliminating the need to constantly convert to fiat currencies, making transactions more convenient, and reducing friction between cryptocurrencies and the traditional financial system.

brl1 is backed by the traditional bank Cainvest, providing liquidity, and supports trading pairs for brl1 to BTC and ETH, with plans to expand into more markets. According to Mercado Bitcoin executives, there are already payment companies interested in using brl1 for transactions.

brl1 Backed by Brazilian Bonds, Expected to Reach $18 Million in First Year of Issuance

The brl1 stablecoin is backed by Brazilian bonds and is being custodied by Fireblocks. The bonds themselves generate returns, potentially making brl1 an interest-bearing stablecoin, providing holders with a certain interest yield. The initial issuance is 10 million reais, approximately $1.8 million, and the issuer expects the market value to reach 100 million reais, around $18 million, within the first year.

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