Bitso, Mercado Bitcoin, and Foxbit have joined forces to issue brl1, a stablecoin pegged to the value of the Brazilian real. The stablecoin will be issued on Ethereum and Polygon, with Cainvest providing liquidity for the BTC and ETH pairs listed on these exchanges and other markets to be developed in the future.
Crypto Consortium to Issue Brl1 Real-Pegged Stablecoin in Brazil
The world of stablecoins is expanding from its dollar-linked origins, as other nations seek to bring their benefits to their national currencies. Bitso, Mercado Bitcoin, and Foxbit, three giants of the Brazilian cryptocurrency market, have recently teamed up to launch brl1, one of the first real-pegged stablecoins seeking to capitalize on the growth of these solutions in Brazil.
Brl1 will be launched into the market later this year and will help expedite transactions between local exchanges, facilitating cryptocurrency purchases and sales without using fiat-based rails. Cainvest, another member of the launch consortium and one of the largest liquidity providers in the country, will be the institution in charge of maintaining brl1 trading pairs against BTC and ETH, and with more tokens.
Fabricio Tota, new business director at Mercado Bitcoin, stated that brl1 was designed to remove the friction between the cryptocurrency industry and the traditional banking system. “When you introduce a real cryptocurrency, with the support of major players in this market, I think we are taking a few steps forward and we have a good chance of reaching this common user,” he stressed.
However, he also disclosed that brl1 could cater to companies providing payment services in Brazil, with some already interested in the project.
Brl1 will be backed by Brazilian treasury bonds and will be issued by Fireblocks, which will provide tokenization and custody services to the consortium. As these bonds offer yields to their holders, the consortium considers providing part of this benefit to holders, turning it into a yield-bearing stablecoin.
10 million reales will be issued first, but the consortium estimates reaching a 100 million market cap in the first year of operations.
