Ripple and the prominent Brazilian financial entity Braza Group have revealed the creation of a new stablecoin on the XRP Ledger (XRPL). The stablecoin, named BBRL, is linked to the Brazilian Real and aims to provide secure and economical options for individuals and enterprises alike.
Ripple Broadens Its Reach In Brazil
Established more than 15 years ago, Braza Group has consistently advanced within the Brazilian banking industry, currently occupying the sixth slot in the interbank market operations overseen by the Central Bank of Brazil (BACEN). In the official press statement issued by Ripple, Braza Group highlighted that BBRL will utilize the speed, security, and scalability of the XRPL to facilitate digital transactions.
“We are devoted to providing a stablecoin that not only adheres to but surpasses the highest standards of security and compliance,” stated Marcelo Sacomori, CEO of Braza Group. “With BBRL, Brazilians and domestic businesses will have new options to safeguard against volatility and optimize their operations, contributing to a more inclusive and efficient financial ecosystem.”
As per Braza Group, the stablecoin will be entirely backed by Braza Bank. Ripple emphasized the strategic significance of integrating a stablecoin like BBRL into its blockchain. “The introduction of a stablecoin like BBRL on the XRP Ledger presents considerable opportunities for the Brazilian market while also establishing the foundation for wider adoption throughout South America and beyond,” commented Markus Infanger, Senior Vice President at RippleX. “These stablecoins enhance efficiency within cross-border payments, broaden access to dependable digital assets, and allow businesses to investigate new financial applications.”
Alongside the stablecoin launch, Braza Group is also involved in DREX—a blockchain-centric initiative by the Central Bank of Brazil (BC). The project, currently in its second testing phase, allows financial institutions the latitude to propose innovative applications that could influence Brazil’s digital currency landscape in the future.
“Our proposal encompasses one blockchain participant and additional partners,” remarked Sacomori regarding Braza Group’s DREX-related strategies. “We recommended four potential use cases, including public blockchain exploration, the tokenization of debentures, custody of DREX assets, and exchanges involving Central Bank Digital Currencies (CBDCs). Although nothing has been confirmed yet, we are optimistic about realizing these objectives soon.”
BBRL is expected to launch in the first quarter of 2025. Initially, institutional clients will have access to the Ripple stablecoin, followed by a broader distribution to retail users via the Braza On app. Sacomori stressed that the stablecoin’s main objective is to enhance transparency, stability, and liquidity in digital markets:
“This stablecoin not only facilitates transparent international transactions, stable investments, and business operations but also encourages market efficiency and security. Our aim is to establish a network that offers high liquidity for these assets.”
As 2025 approaches, Sacomori foresees significant regulatory advancements in Brazil’s cryptocurrency domain, including clearer regulations concerning asset custody by financial institutions. He further shared the company’s ambitious vision for BBRL: “By the conclusion of next year, we anticipate BBRL to capture approximately 30% of the market in Brazil, achieved not only through its integration but also by creating new global settlement pathways for BBRL.”
In the forthcoming years, Braza Group aspires to solidify its position as Brazil’s leading cryptocurrency-focused bank, with a particular emphasis on enabling businesses and exchanges to utilize stablecoins. Sacomori underscored the rising demand and projected that stablecoins could become essential for global currency exchanges:
“In five years, we anticipate that there will be no currency exchanges worldwide without stablecoins. We are poised to market stablecoins in the institutional sector, catering to Brazilian companies with procurement needs. Throughout this year, we have secured a substantial portion of this market, establishing ourselves as a sector benchmark today.”
Interestingly, Brazil’s Securities and Exchange Commission (CVM) has authorized the world’s inaugural spot XRP ETF on Wednesday, making it the first nation to achieve this milestone. Managed by Hashdex and Genial Investimentos, the ETF is poised to debut on Brazil’s B3 stock exchange.
At the time of reporting, XRP was priced at $2.70.
Featured image generated with DALL.E, chart provided by TradingView.com