Brazil approves first XRP ETF and launches BBRL stablecoin

Brazil has approved the world's first spot XRP (CRYPTO:XRP) exchange-traded fund (ETF) and is also seeing the launch of a Brazilian real-pegged stablecoin on Ripple's XRP Ledger (XRPL).

The ETF, named the Hashdex Nasdaq XRP Index Fund, received approval from Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), on February 19.

According to Hashdex, an official trading date on Brazil’s B3 exchange is yet to be announced.

Hashdex also manages various other crypto ETFs in Brazil, providing exposure to Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), DeFi, Web3, and the metaverse.

XRP prices saw an increase of 7.8% following the announcement, reaching $2.7248.

Ripple's Latin America Managing Director, Silvio Pegado, praised Brazil’s progressive regulatory stance.

Pegado noted that the country’s leadership in crypto adoption could inspire financial innovation worldwide.

Concurrently, Braza Group, a player in Brazil’s interbank market, is launching the BBRL stablecoin on Ripple’s XRP Ledger.  

Braza Bank, specialising in foreign exchange services and international payments, backs the stablecoin.

“We are committed to offering a stablecoin that not only meets but exceeds the highest security and compliance standards,” stated Marcelo Sacomori, CEO of Braza Group.

Markus Infanger, Senior Vice President at RippleX, noted the significance of launching the BBRL stablecoin on the XRP Ledger.

“Launching a stablecoin like BBRL on the XRP Ledger creates significant opportunities for the Brazilian market while also laying the groundwork for broader adoption across South America and beyond,” said Infanger.

The BBRL stablecoin will initially be available to institutional clients, with plans to expand to business-to-consumer customers.

Sacomori anticipates BBRL capturing approximately 30% of the Brazilian market share by the end of next year.

Brazil’s central bank is also exploring blockchain technology and asset tokenisation through the DREX initiative, alongside plans to develop a central bank digital currency (CBDC).

Gabriel Galipolo, Brazil’s central bank chief, mentioned the surge in crypto asset usage in the country, with stablecoins accounting for around 90% of the flow.

At the time of reporting, the XRP (XRP) price was $2.69.