Brazil's three major cryptocurrency exchanges Bitso, Mercado Bitcoin and Foxbit recently cooperated to launch a stablecoin brl1 linked to the Brazilian legal currency Real (Reais), hoping to improve the convenience of local cryptocurrency transactions and reduce the interaction between cryptocurrency exchanges and traditional finance. Friction between systems. brl1 will be issued on Ethereum and Polygon, with tokenization and custody provided by Fireblocks.
brl1 aims to reduce friction between cryptocurrency and traditional finance
Brazilian exchanges such as Bitso, Mercado Bitcoin and Foxbit have joined forces to launch the brl1 stablecoin. brl1 is linked to the Brazilian legal currency Real (Reais) and will be issued on the Ethereum and Polygon chains. It aims to promote liquidity in the Brazilian cryptocurrency market without the need to exchange fiat currency back and forth, making transactions more convenient and reducing friction between cryptocurrency and the traditional financial system.
brl1 is provided with liquidity by traditional bank Cainvest and provides support for brl1's trading pairs on BTC and ETH, with plans to expand to more markets. According to the director of Mercado Bitcoin, there are currently payment companies interested in using brl1 for payments.
brl1 is backed by Brazilian government bonds and is expected to reach US$18 million in the first year of issuance
The brl1 stablecoin is backed by Brazilian government bonds, with Fireblocks serving as the token custodian. And the treasury bonds themselves will generate income, so brl1 may become an income-based stable currency, bringing a certain interest return to the holders. The initial issuance is 10 million reais (approximately $1.8 million), and the issuer expects a market capitalization of 100 million reais (approximately $18 million) within the first year.
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