Brazil's central bank digital currency Drex launches second phase pilot, collaborates with Microsoft and Chainlink to promote automated trade settlement.

The Central Bank of Brazil (BCB) has officially launched the second phase pilot program of its central bank digital currency Drex, focusing on cross-border trade of agricultural products and the automation of supply chain processes. The program will integrate blockchain technology with cloud infrastructure to enhance global trade finance efficiency.

Tokenization of Electronic Bills of Lading and Payment Settlement Innovation to Enhance Global Trade Finance Efficiency

According to a report, the second phase of the Drex pilot program has brought together numerous technology and financial industry players with the goal of using blockchain technology to improve global trade finance efficiency. The initiative involves the tokenization of electronic Bills of Lading (eBOL) and testing mechanisms such as Delivery versus Payment (DvP) and Payment versus Payment (PvP) to optimize supply chain payment processes and interoperability among multiple platforms and currencies.

Participation of Tech and Finance Players like Microsoft and Chainlink Boosts Drex's Implementation

The pilot program has brought together tech and finance players including Microsoft, Chainlink's decentralized oracle network, Banco Inter, a digital bank in Brazil, and Brazilian tech firm 7Comm. Each player has a specific role in the initiative:

• Microsoft: Providing cloud infrastructure to ensure technical stability.
• Chainlink: Leveraging their Cross-Chain Interoperability Protocol (CCIP) for secure and transparent cross-platform transactions, supporting blockchain-based Delivery versus Payment (DvP) mechanisms.
• Banco Inter: Responsible for the local implementation and promotion of Drex within Brazil.
• 7Comm: Providing blockchain integration technology support to ensure the execution and professionalism of the pilot program.

Brazil Gradually Promoting DeFi Applications with Promising Future Potential

In the initial phase of the Drex pilot program, banks primarily led initiatives to tokenize "bank deposits" and "bond tokenization" for transaction management on the blockchain. There are 13 confirmed use cases available for testing, such as "accounts receivable distribution," "international trade financing," and "agricultural conglomerate assets."

The Drex project aims to address the "three challenges" of blockchain decentralization, privacy, and programmability, integrating tokenization technology into bank balance sheets. Over the next two years, the Drex pilot will expand to digital asset trading, including applications such as liquidity pools for government bonds and international trade.

Additionally, Ripple, a cryptocurrency player, has entered Brazil and partnered with local cryptocurrency exchange Mercado Bitcoin to launch an "end-to-end payment management solution," helping local businesses conduct international payment settlements faster and more affordably, operating 24/7.

Ripple Collaborates with Brazilian Exchange Mercado Bitcoin to Optimize Enterprise Cross-Border Payments