Brazil is rapidly expanding its market for stablecoins pegged to the Brazilian real, challenging the global dominance of U.S. dollar-backed tokens, driven by domestic financial needs and attractive government bond yields.
The BRL stablecoin market has grown to nearly $62 million, with weekly trading volumes for these tokens exceeding $238 million. These digital currencies serve as alternatives for payments, remittances, and a bridge to decentralized finance (DeFi).
On the Polygon network, BRL-pegged stablecoins have become the second largest in terms of volume. Thamilla Talarico, a representative for Polygon Brasil, confirmed this positioning.
This growth contrasts sharply with the broader global stablecoin market, which boasts a capitalization exceeding $310 billion but sees more than 90% of its tokens pegged to the U.S. dollar.
A key driver for this domestic adoption is Brazil’s high sovereign bond yields. The 10-year Brazilian government bond currently offers around 14%, having recently peaked near 15%, making it one of the world’s most attractive bond markets.
São Paulo-based fintech Crown recently secured $8.1 million in seed funding, led by Framework Ventures, to launch BRLV. This new stablecoin will be fully backed and linked to the Brazilian real.
The initiative aims to democratize access to these high bond returns for Brazilians. It also sidesteps bureaucratic hurdles and complex tax rules often faced by foreign investors attempting to engage directly with traditional Brazilian investments.
Major BRL stablecoins currently include BRLA, BRZ, and cREAL. BRLA, issued by Avenia/BRLA Digital, holds the largest share, accounting for $35 million or 57.4% of the total supply.
The Celo and Polygon networks host the majority of these BRL-pegged tokens. Integration with Brazil’s popular instant payment system, PIX, further boosts stablecoin adoption.
The country’s overall crypto market is projected to reach $318 billion in total volume between July 2024 and June 2025, according to Chainalysis data.
Brazilian Federal Law No. 14.478, which regulates virtual assets, provides a clear framework. This regulatory environment supports the ecosystem’s continued expansion.