🌎 Brazil leads Latin America’s crypto revolution

XRP ETF approval and the launch of BBRL stablecoin

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Frontera EC & Joker
February 28, 2025

👋 Welcome to Frontera, the newsletter showcasing the reality of crypto in Latam. Join industry leaders from The Ethereum Foundation, The Solana Foundation, Binance, Crypto.com, dYdX and others to discover why Latin America has become one of the most dynamic and promising markets in the crypto world and how you can tap into this market.

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🇧🇷 Key events in Brazil this week

This week in Brazil, two major developments in the cryptocurrency space are turning heads, big enough to deserve a section of their own: the approval of the first spot XRP ETF and the launch of a stablecoin tied to the Brazilian real.

These events are paving the way for Brazil to strengthen its position in the global cryptocurrency market, as it continues to embrace and regulate digital finance. Let’s dive into the details.

🌐 World’s first spot XRP ETF 

In a historic move, Brazil’s Securities and Exchange Commission (CVM) has approved the first-ever spot XRP ETF. Managed by Hashdex, the ETF provides a regulated investment vehicle for XRP, allowing traditional investors to gain exposure to the digital asset without directly owning it. 

This is a major step, not only for Brazil, but for the broader Latin American region. It positions Brazil at the forefront of cryptocurrency adoption in traditional finance, aligning with global trends where digital asset-backed ETFs are becoming increasingly popular.

Spot Bitcoin ETFs have already attracted $112.99B in assets under management (AUM), with a cumulative volume of $759.8B.

Ethereum ETFs have also seen strong traction, with $10.18B AUM and $56.42B in total volume. 

Bitcoin ETFs have generated $39 billion in total net inflows, proving the strong demand for regulated crypto investment products.

J.P. Morgan analysts are optimistic that the XRP ETF will attract between $3 billion and $6 billion in investments, tapping into the growing appetite for spot crypto funds. 

With Brazil now setting a benchmark, this approval is likely to encourage other Latin American countries to follow suit, boosting the region’s position in the global crypto ecosystem. 

🪙 Launch of stablecoin tied to the Brazilian real

In a significant development for Brazil’s digital finance landscape, Braza Group has launched BBRL, a stablecoin pegged 1:1 to the Brazilian real, powered by the XRP Ledger (XRPL). This stablecoin offers a reliable, low-volatility digital asset for daily transactions, targeting both businesses and individuals.

Fully backed by the Brazilian real, BBRL ensures stability while enabling fast, low-cost transactions. Its use of the XRP Ledger promises scalable, efficient solutions for cross-border payments, reducing reliance on foreign currencies like the US dollar.

Marcelo Sacomori, CEO of Braza Group, emphasized that BBRL will help Brazilians and national companies protect against market volatility and optimize their operations. The stablecoin is expected to foster new business models and play a significant role in Brazil’s financial modernization efforts, particularly in the growing digital economy, by offering an alternative to traditional banking systems. 

Notably, 90% of Brazil’s crypto transactions are already tied to stablecoins, highlighting the demand for stable and reliable digital assets in the country.

BBRL will be available to institutional clients in early 2025 and will also be accessible to B2C customers via the Braza On app. This rollout aims to provide a user-friendly way to access the stablecoin for everyday transactions, both locally and internationally. Though the launch date has not yet been confirmed, BBRL’s introduction represents a key move for Brazil, positioning the country as a leader in the Latin American stablecoin market.

📊 Brazil’s growing crypto influence

Brazil’s approval of the first spot XRP ETF and the launch of the BBRL stablecoin are significant milestones in the country’s digital evolution. 

These developments highlight Brazil’s growing role as a leader in the cryptocurrency space, not only in Latin America, but globally. As the country continues to innovate and integrate blockchain technology into its financial system, it is paving the way for broader crypto adoption in the region.

With these initiatives, Brazil is positioning itself at the forefront of the digital economy, creating new opportunities for businesses and investors alike. The future of crypto in Brazil looks promising, and we'll be here to cover its journey as it evolves into a key digital finance hub in the global market.

📰 Latam Crypto News 📰

Key crypto stories in LATAM this week

According to Binance, 95% of crypto users in Latin America plan to buy more digital assets this year. The survey showed that 40.1% of users will make purchases in Q1, with a significant increase in crypto adoption in the region, which grew by 116% in 2024.

Tether has made an offer to acquire 51% of Adecoagro, a major agro-industrial company in South America. This acquisition aligns with Tether’s strategy to expand into traditional industries, diversifying its investments beyond the cryptocurrency sector.

The value of tokenized real estate in Latin America increased by 130% in 2024, reaching €32.5 million. Investors are increasingly focusing on residential, vacation, co-living, and property flipping sectors, reflecting growing interest in decentralized real estate investment opportunities.

🇦🇷 Argentina

More than 13,000 investors in the LIBRA memecoin, tied to Argentina’s president Javier Milei, collectively lost $251 million. The majority saw losses exceeding $1,000. We covered the entire scandal in detail in last week’s edition, breaking down the full story behind the losses, check it out here.

Following the LIBRA scandal, Vitalik praised Argentina’s Ethereum community, highlighting its talent and potential. He proposed the country as the host for Devconnect, emphasizing its capacity to drive Ethereum adoption. President Milei responded positively, supporting the initiative.

🇲🇽 Mexico

Movistar and Helium have teamed up to bring blockchain-powered wireless connectivity to 2.3 million users in Mexico. This partnership will reduce costs for Movistar and expand Helium’s decentralized network, rewarding users with crypto for data transfers.

Ripio, the Argentine cryptocurrency exchange, has received approval from Mexico’s CNBV to operate as a money transmitter. The company will offer crypto services for businesses, including domestic and international transfers, expanding its presence in Latin America.

🇧🇴 Bolivia

Bolivian congresswoman Mariela Baldivieso proposes tokenizing the country’s lithium reserves, aiming to enhance global trade and attract investment by leveraging blockchain technology.

🇵🇪 Peru

Peru’s tax authority, SUNAT, is evaluating a potential income tax on cryptocurrency gains as part of efforts to regulate digital transactions. The move aims to increase fiscal transparency and reduce tax evasion without damaging crypto adoption.