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Olá pessoal!
For today’s episode I’m joined by Thomaz Teixeira, CEO of BRL1, and Ben Reid, Head of Stablecoins at Bitso, to discuss the BRL1 stablecoin project.
BRL1 represents a departure from the typical competitive dynamics we see in crypto markets. Instead of each exchange launching its own stablecoin, major Brazilian platforms Mercado Bitcoin, Bitso, Foxbit, and Cainvest formed a consortium to build shared infrastructure.
Despite launching just months ago, BRL1 has already achieved impressive market penetration, regularly trading as the sixth or seventh highest-volume crypto asset on Brazilian exchanges, ahead of established tokens like Dogecoin and sometimes even Solana.
More significantly, BRL1 is capturing roughly half the trading volume of USDC in Brazil on centralized exchanges, a remarkable feat considering every user already had access to dollar-denominated stablecoins.
What makes BRL1 particularly compelling is its focus on institutional use cases. The project is attracting significant interest from market makers and liquidity providers who need efficient rails for moving value between exchanges globally.
As Teixeira explained, his background in high-frequency trading and algorithmic arbitrage positioned him to understand the friction points in cross-exchange liquidity flows, problems that BRL1 was specifically designed to address.
Reid provided valuable context on the broader stablecoin landscape in Latin America, noting that institutional market makers are increasingly positioning themselves across G20 markets and seeking to onboard trusted local currency stablecoins. This isn’t speculative positioning - these players are responding to real demand from corporates conducting cross-border payments and financial institutions seeking more efficient settlement mechanisms.
We also also touch on how BRL1 addresses some of the interoperability challenges that Brazil’s now-shuttered Drex CBDC project aimed to solve. By creating standardized infrastructure that connects previously siloed liquidity pools, BRL1 is demonstrating how private sector innovation can fill gaps in market infrastructure.
Key Takeaways:
Consortium Model Shows Promise: Competitors collaborating on shared infrastructure can create network effects that benefit all participants and accelerate adoption
Institutional Traction Is Real: Market makers and liquidity providers are actively onboarding BRL1 for cross-exchange arbitrage and cross-border payment flows
Volume Metrics Validate Demand: BRL1’s trading volume already represents 50% of USDC’s Brazilian exchange volume despite being live for only months
Local Stablecoins Fill Market Gaps: Non-dollar stablecoins serve distinct use cases beyond currency speculation, particularly for regional market efficiency and capital flows
You can connect with Thomaz and Ben on Linkedin.
Have a great week everyone,
-AWS
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