Brazil has approved its first spot XRP exchange-traded fund (ETF), allowing investors to trade XRP on the stock exchange. At the same time, a Brazilian bank is working on a stablecoin based on Ripple’s blockchain (XRPL).
Braza Bank’s BBRL stablecoin. Source: Braza Bank
Brazil Approves XRP ETF
The Brazilian market regulator, Comissão de Valores Mobiliários (CVM), has given its approval for trading the Hashdex Nasdaq XRP Index Fund in Brazil. Yet, no specific date has been revealed for its listing on Brazil’s B3 stock exchange.
Hashdex already listed a set of crypto ETFs in Brazil, such as funds for Bitcoin, Ethereum, Solana, DeFi, Web3, and the metaverse.
In the meantime, in the US, the Securities and Exchange Commission has also approved several XRP ETF proposals filed by Nasdaq and Cboe BZX on behalf of institutions such as CoinShares, Canary Capital, and WisdomTree.
Following the news, XRP surged by 7.8% to $2.72, down 20% from its lifetime high.
Brazilian Bank to Launch XRP-Based Stablecoin
At first, BBRL will only be available to big financial companies. However, by the end of 2025, it will be open to regular customers as well. The bank expects BBRL to capture 30% of the Brazilian stablecoin market by then.
Brazil’s Growing Crypto Market
Brazil’s central bank is also exploring blockchain technology through a project called DREX. This initiative looks at tokenizing assets, cross-border payments, and possibly creating a digital version of Brazil’s currency (CBDC).
Brazil central bank official Gabriel Galipolo has recently reported that 90% of the digital currency payments on the nation are done with stablecoins, and usage of digital currency has strong growth.
With approval of the XRP ETF and introduction of the BBRL stablecoin, Brazil is taking center stage in the global cryptocurrency sphere.
