#213: Brazil Tops US$1 Billion in Tokenized Assets
Plus: Central Bank previews forthcoming VASP regulation; stablecoin usage to circumvent IOF tax surges
Olá pessoal!
Welcome back to Brazil Crypto Report for the week of October 20-24, 2025.
I hope everyone had a great weekend. Before we dive into this week’s news I want to flag two upcoming events in Sao Paulo that you should definitely attend if you’re going to be in the area.
💥 Satsconf is Brazil’s premier bitcoin conference and will take place November 7-8th as part of SP Bitcoin Week.
Lots of the big name Brazilian bitcoiners will be present, as well as notable gringos like Stephan Livera, Bradley Rettler of the University of Wyoming and Alisia Painter of Botanix.
🦄 ETH Latam is happening the same week, with a hackathon on November 6-7, the main conference on November 8 and a day of networking, roundtables and whiteboarding on the 9th.
This will be the biggest edition of ETH Latam to date, and the first time the event is being hosted in Brazil.
I’ll be participating in both events so please shoot me a note if you’ll be around!
👊 Jump into the BCR English language Telegram group if you’d like to continue the conversation
📰 Top Stories this Week
Central Bank sheds light on forthcoming VASP regulation
Brazil has US$1 billion in tokenized assets onchain, according to the Brazil Tokenization Report
Bitcoiner takes on 10 TradFi Faria Limers in viral YouTube debate
Stablecoin usage in Brazil tops R$161.4 billion in the first half of 2025
Stablecoin adoption grows as a IOF workaround
Thanks for reading and have a great week!
- AWS
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Brazil has US$1 billion in tokenized assets onchain, report finds
More than 30 tokenization platforms operating in Brazil have combined to bring more than US$1 billion worth of “real world assets” onchain, according to the second edition of the Brazil Tokenization Report.
The report highlights the growth of tokenization of fiat currency (stablecoins) and other assets in the Brazilian market, and provides a comparison of how this ecosystem has developed vis-a-vis Latin American neighbors and other countries of the world.
Growing interest among banks and institutions, combined with greater clarity from the CVM (Brazil’s securities regulator) have created a favorable environment for tokenization initiatives in the country.
These projects include real estate, receivables, agriculture, and public debt instruments, with projects increasingly moving from pilot to production stages.
Growing regulatory certainty appears to be unlocking institutional demand, allowing banks, fintechs, and tokenization platforms to experiment with compliant digital products.
Gustavo Cunha of Fintrender, who served as editorial director for the report, told Valor:
“Tokenization is already a reality that’s here to stay, and Brazil isn’t just following suit—it’s helping to define its direction. This edition of the study reinforces the thesis that we are facing a structural change in the financial markets.”
60 of tokenization platforms reported that they are already operating with licenses or within the norms established by the CVM, the report found.
Lucas Danicek, president of Nexa Finance - which commissioned the report, said:
“The market’s evolution in just one year is impressive. We already have over US$1 billion in tokenized assets in Brazil, and this second edition of the report clearly shows how the country has taken the lead in Latin America,”
Notably, the study highlights how 2025 became the first year that the market left the experimental phase and entered a scaling phase. This has been driven by the evolution of CVM rules and forthcoming revision of Resolution 88, and forthcoming VASP regulations from the Central Bank
Central Bank sheds light on forthcoming VASP regulation
Officials from Brazil’s Central Bank offered some clarity around forthcoming VASP regulation - which is expected to be released later this year.
Speaking at an event hosted by ABToken and Pinheiro Neto Advogados, Carolina Bohrer, Head of the Financial System Organization Department at the bank, discussed how the implementation of a VASP regime will work:
“Our decision was to propose a phased implementation, evaluating several criteria, including who was already operating, the company’s reputation, and the equity requirements of interested parties.
We will work in phases because we don’t know the volume of authorization requests we will receive. Currently, we estimate between 50 and 100 requests, but we know this number could be higher.”
Applicants will need to have minimum capital requirements, a local entity, three directors residing in Brazil and statements of capital origin based on audited financial statements. Luciano Garcia Roman, a bank official, said:
“Minimum capital and equity are calculated based on risk. A minimum value has already been established, which should be increased, and it depends on the value of the transactions.”
A large component of the regulation will be aimed at making sure foreign companies operate in Brazil with the same level of supervision and compliance as local firms.
For example, international companies seeking a VASP license will not be able to conduct essential and strategic operations fully outside of the country, and the Central Bank may monitor compliance of this.
Victor Jorge of Jorge Advogados told Valor that there more may be more restrictive requirements still in the works:
“I wouldn’t rule out other, tougher measures, such as proportional increases in volume and custody, and stricter cybersecurity and governance requirements.”
CoinTelegraph Brasil Portal do Bitcoin
1 Bitcoiner vs 10 Faria Limers
Crypto education channel Paradigma Education hosted on its YouTube channel a “1 vs 10” debate, a format that has become popular on social media.
This debate puts Bitcoiner Felipe Sant’Ana against 10 “Faria Limers” - or people who work on Faria Lima, Brazil’s version of Wall Street.
Topics debated included bitcoin mining, the environment, how bitcoin can have value if it isn’t backed by anything and comparisons to other financial instruments.
Definitely worth a watch if you understand Portuguese
🗞Brazil Crypto News Rundown
📈 Markets
Brazilian individuals and companies are using USD-backed stablecoins to conduct cross-border payments and investments without triggering the IOF tax that applies to traditional foreign exchange transactions. This practice, while not explicitly illegal, currently operates in a juridical limbo due to gaps in Brazil’s regulatory framework, as neither the Central Bank nor the Receita Federal have issued guidelines on how crypto-based international transfers should be taxed or reported. (Valor)
Stablecoin usage in Brazil topped R$161.4 billion during the first half of the year, 71% of the total crypto volume reported, according to the Receita Federal. R$228 billion in total trading volume was reported during the period, divided into nearly 80 million transactions - though that number has declined steadily from January to June. Danilo Moreno, an analyst at Investo, argued that this trend represents a maturation of the market:
“The decline in the number of transactions, even with the financial volume remaining high, indicates a change in the transaction profile: fewer small transactions and more concentrated, higher-value trades.
Crypto investors in Brazil are operating more strategically, focusing on long-term positions and reducing the speculative activity that predominated in the market’s early stages.” (Valor)
Crypto adoption in Brazil is expanding rapidly across every investor profile, according to Bruno Barino, CEO of BlackRock Brazil, in an interview with Folha de S. Paulo. Barino noted that even though pension funds are still restricted from investing in digital assets, demand now spans “from retail to bank treasury clients,” signaling a broad institutionalization of crypto in the country.
B3-listed bitcoin treasury company OranjeBTC acquired US$1 million worth of bitcoin on the open market. (Exame)
Seven out of ten Brazilian fund managers have direct exposure to digital assets, according to a study by Cantarino Brasileiro, ABFintechs and VeriBlocks. (Portal do Bitcoin)
Mercado Bitcoin executed an on-chain pilot using tokenized assets to simulate investor participation ahead of the official OranjeBTC IPO. The tokenized pre-offering allowed investors to gain early exposure to OranjeBTC’s performance by purchasing digital tokens pegged to the company’s eventual shares. (CoinTelegraph Brasil)
Brazil’s Receita Federal revealed a list of eight altcoins that are among the country’s most-traded digital assets, signaling diversification beyond bitcoin and Ethereum. The list includes Polygon, Solana, Cardano, Avalanche, Chainlink, Tron, Shiba Inu and BNB. (CoinTelegraph Brasil)
CoinTelegraph Brasil highlighted how major Latin American corporations — like Nubank and Mercado Livre are increasingly holding Bitcoin in their corporate treasuries.
Brazilian economist and bitcoin commentator Fernando Ulrich said that bitcoin could be worth US$ 29 million per coin by 2045 if current monetary trends and adoption rates continue. His analysis argued that bitcoin remains the most asymmetric investment opportunity of this century. (Portal do Bitcoin)
Stablecoins reached R$74 billion in transactions in Brazil in the first half of 2025, according to monitoring data from Biscoint. Stablecoin volumes were up 36% from June to July alone. (CoinTelegraph Brasil) (Valor)
Brazil’s Central Bank is tightening operational and cybersecurity requirements for crypto exchanges and payment institutions following a wave of Pix hacks. (CoinTelegraph Brasil)
Brazil ranks among the five countries with the highest levels of cryptocurrency adoption globally in 2025 alongside the United States, India, Turkey, and Nigeria, according to a report from TRM Labs. (Portal do Bitcoin)
📲 Adoption
Tomasz Stańczak, executive director of the Ethereum Foundation, is confirmed to attend ETH Latam, which will take place in Sao Paulo from November 6-9. (Portal do Bitcoin)
Anbima has launched a pilot project to tokenize debentures and investment fund shares. (Valor Investe)
Brazil’s Central Bank released a new study showing that blockchain technology can reduce financial transaction costs by up to 77%, cutting average expenses from R$4,000 to R$900 per operation. The main efficiency gains stem from instant reconciliation, automated verification, and reduced dependence on intermediaries. (CoinTelegraph Brasil)
Brazil’s growing interest in bitcoin and stablecoins, particularly among institutions, was a key theme of the PlanB conference hosted in Lugano, Switzerland. Will Hernández, Business Development Manager for Latin America at Bitfinex, said:
“Bitcoin is becoming indispensable for institutional investors in the region, and Brazil is the laboratory where this integration phase is happening fastest. The decision to block the proposed 18% tax on crypto transactions shows that there is room for the country to advance regulation without hindering innovation. The challenge now is to ensure this dialogue between the government and the market continues to evolve.” (CoinTelegraph Brasil)
Brazil has become one of the fastest-growing regions for Base, the Layer-2 blockchain launched by Coinbase. It aims to continue expanding its presence by targeting the country’s fast-growing creator economy and super app ecosystem. Guilherme Bettanin, Base country lead for Brazil, said:
“Brazil is a priority market for Base due to its large, young, connected, and technologically engaged population.” (CoinTelegraph Brasil)
Visa announced plans to launch AI-powered smart wallets in Brazil by 2026, capable of autonomously managing purchases and payments. (CoinTelegraph Brasil)
Polygon Labs announced the “Rio” mainnet update to the Polygon blockchain, named after Rio de Janeiro. With the upgrade, Polygon PoS now operates with a redesigned validator structure, opening up space for more participants and ensuring greater decentralization. Lucca Martins, a Brazilian software engineer at Polygon, said:
On our team, it’s become a tradition to name each hardfork after the hometown of those who participated heavily in its development. This time it was my turn, and Rio HF reflects this connection between work and identity.” (CoinTelegraph Brasil)
A new study by the Blockchain Game Alliance reveals that Brazilian investors and businesses are increasingly using stablecoins to bypass the traditional banking system and access international markets. (CoinTelegraph Brasil)
Foxbit has announced a new partnership with Shipay aimed at bringing crypto payments to over 2 million users. (CoinTelegraph Brasil)
Brazil’s first Bitcoin-themed documentary film is set to premiere soon, featuring some of the country’s most influential figures in the crypto ecosystem. The project aims to explore the rise of Bitcoin in Brazil, its social and economic implications, and the narratives that shaped its adoption. (Livecoins)
Hardware wallet provider Ledger announced plans to integrate Pix into its wallet app, enabling Brazilian users to buy and sell bitcoin directly from their self-custody wallets. (CoinTelegraph Brasil)
Brazil’s Itaipu hydroelectric plant has become the fourth-largest global source of electricity used for Bitcoin mining, according to the Hashrate Index. (CoinTelegraph Brasil)
OG bitcoiner Rocelo Lopes urged holders to avoid using bitcoin for routine purchases such as coffee or small transactions, emphasizing its role as a monetary reserve asset rather than a currency for daily spending. (CoinTelegraph Brasil)
A new study by Qive shows that Pix and digital wallets account for only 6% of B2B payments in Brazil, revealing a major gap between the country’s rapid consumer fintech adoption and slower digital transformation among corporations. (CoinTelegraph Brasil)
Hackers stole at least R$40 million after breaching Diletta Solutions, a Pix technology provider for payment firms. Attackers sent fake Pix orders that diverted R$26 million from FictorPay clients and routed R$14 million from other customers into hundreds of straw accounts. (Portal do Bitcoin)
🏛 Policy, Regulation and Enforcement
Brazil’s Ministry of Finance is preparing a new legislative strategy to recover parts of the failed MP 1,303, which expired after being rejected in Congress earlier this month. The new plan is to divide the measure into two separate taxation bills - one focused on online casinos and the other focused on crypto assets. (Portal do Bitcoin)
Federal Police seized 14 Bitcoin mining machines during a routine inspection on the Via Dutra highway between São Paulo and Rio de Janeiro. (CoinTelegraph Brasil) (Portal do Bitcoin)
A businessman was sentenced to 17 years in prison for operating a multi-million real cryptocurrency money-laundering scheme connected to Brazil’s powerful criminal organization Primeiro Comando da Capital. (Portal do Bitcoin)
A labor court in Minas Gerais has authorized the seizure of cryptocurrencies to settle unpaid labor debts, setting a legal precedent for using digital assets to satisfy court rulings in Brazil. (CoinTelegraph Brasil)
A 38-year-old man in Brazil was caught illegally mining Ethereum using electricity from the company where he worked, earning around R$ 31,000 before being discovered. (Portal do Bitcoin)
A lawyer in São Paulo was arrested for allegedly embezzling R$3 million from a client and diverting the funds into cryptocurrency investments. (Portal do Bitcoin)