Brazil Approves Historic XRP ETF and Plans Stablecoin

Amid the crypto market frenzy, Brazil marks a historical turning point by approving the world’s first XRP spot ETF, while a local bank prepares to launch an innovative stablecoin on the XRP Ledger network.

Brazil launches the first XRP spot ETF

On February 19, 2024, the Brazilian financial regulator (CVM) validated the launch of the Hashdex Nasdaq XRP Index fund, marking a global first for a spot XRP ETF.

This advancement positions Brazil as a pioneer in the crypto market, ahead of the United States where the SEC is still reviewing several similar applications submitted by CoinShares, Canary Capital, and WisdomTree.

The management firm Hashdex, already known in Brazil for its Bitcoin, Ethereum, and Solana ETFs, is thus enriching its investment offering. Although the start of trading on the Brazilian stock exchange B3 has not yet been set, the announcement caused the XRP price to surge by 7.8%, reaching $2.72.

Ryan Lee, chief analyst at Bitget Research, emphasizes the importance of this decision: “This global first could accelerate the approval of crypto ETFs in other countries, contrasting with the more cautious approach of the U.S. SEC” This innovation reinforces Brazil’s position as a major player in the institutional adoption of cryptocurrencies.

A Brazilian bank innovates with a stablecoin on XRP Ledger

Alongside this global first, the Braza Group, a major player in the Brazilian interbank market, has announced the upcoming launch of the BBRL, a stablecoin pegged to the Brazilian real on the XRP Ledger blockchain. This initiative, scheduled for the first quarter of 2025, illustrates the growing confidence of traditional financial institutions in blockchain technology.

Marcelo Sacomori, CEO of Braza Group, aims to capture 30% of the Brazilian market by the end of 2025. The group will first deploy the stablecoin to institutional clients, then open it to individuals, thus demonstrating its intention to adopt a gradual and controlled strategy.

This innovation fits within a broader context of modernizing the Brazilian financial system, particularly through the DREX project, a blockchain initiative by the central bank exploring asset tokenization and cross-border payments.

The convergence of these significant advancements, with the launch of the XRP ETF and the BBRL stablecoin, reinforces Brazil’s positioning as an essential innovation center in the crypto ecosystem. This dynamic fosters increased institutional adoption of XRP and blockchain technologies in Latin America. Furthermore, the country is exploring the creation of a strategic reserve in bitcoin, RESBit, an initiative driven by deputy Eros Biondini.