Brazil’s Braza Group has launched a Brazilian Real stablecoin BBRL. The issuance is particularly significant because its primary activity is as a foreign exchange (FX) bank. During the first half of 2024 it was involved in US$30 billion of transactions. It ranks sixth in the central bank’s interbank markets and has a balance sheet worth more than US$500 million (as of mid 2024).
Apart from direct foreign exchange transactions and cross border payments, the specialist bank targets mass payouts and offers Braza checkout. That’s an online solution that enables foreign companies to sell to Brazilians, allowing consumers to pay with Pix. There’s an FX angle because the seller is paid out in their local currency.
Initially the stablecoin is accessible by institutional clients of Braza Bank. Next quarter it plans to make it available to retail clients via its Braza On app, a multicurrency wallet. The stablecoin uses the XRP Ledger.
“With BBRL, Brazilians and national companies gain new alternatives to protect against volatility and streamline their operations, contributing to a more inclusive and efficient financial ecosystem,” said Marcelo Sacomori, CEO of Braza Group.
The reference to volatility is because Braza plans to target the crypto market as well as payments. As with other stablecoins, it is pegged 1:1 to the Brazilian Real. The bank touts the benefits of low cost and speed for both local and international transactions.
Braza has also applied to participate in DREX, the central bank’s wholesale CBDC and tokenization initiative.
We’d observe is that one of Braza’s key activities is it’s a market marker for the Brazilian Real against foreign currencies. With its relationship with Ripple and Ripple’s launch of the RLUSD stablecoin, it could potentially make markets between the two stablecoins and others.
Meanwhile, Braza now joins dozens of banks taking their early steps with stablecoins. All of them are explored in our report on bank stablecoins and tokenized deposits.
