Crown, a fintech company based in São Paulo, has secured $8.1 million to introduce a stablecoin denominated in Brazilian real, aimed at enabling institutional investors to access Brazil’s high-yield fixed-income market.
The stablecoin, named BRLV, is set to facilitate global investors in accessing the country’s double-digit interest rates, which are typically challenging to attain due to local regulations and capital controls.
BRLV is entirely backed by Brazilian government bonds, which deliver yields significantly higher than those found in more established economies.
As reported by TradingEconomics, the yield on a 10-year Brazilian government bond is approximately 14%, having recently reached a peak of around 15.2%. This makes Brazil one of the most appealing sovereign bond markets worldwide; however, foreign investors often encounter bureaucratic hurdles, complex tax regulations, and currency conversion challenges when attempting direct investments.
The yield on government bonds is influenced by market predictions concerning the Central Bank of Brazil’s benchmark Selic rate, which currently sits at 15% after several increases this year intended to curb inflation.
By launching a tokenized version of the real supported by government debt, Crown aims to make the fixed-income market more accessible and provide a digital alternative for holding BRL-linked assets.
“The most secure method to manage stablecoin reserves and guarantee that each token is fully backed is to invest those reserves in government bonds,” stated John Delaney, the co-founder and CEO of Crown.
“While many stablecoin issuers keep this income for themselves, we wanted to establish a fairer model for our institutional partners” through an income-sharing system, he added.
Crown’s funding round was spearheaded by Framework Ventures, with contributions from Valor Capital Group, Coinbase Ventures, Paxos, and others.
Related: ‘Uptober’ starts with US shutdown, Brazil seeks Bitcoin miners: Global Express
Brazil rises as a pivotal market for stablecoins
As Crown’s BRLV seeks to broaden foreign investor access to Brazilian assets, Brazil has emerged as one of the region’s most vibrant stablecoin markets.
According to Chainalysis, Brazil topped Latin America with $318.8 billion in crypto transactions received from July 2024 to June 2025, partly due to comparatively favorable regulations. The report indicated that over 90% of Brazil’s crypto transaction volume involves stablecoins, highlighting their increasing significance in payments and cross-border transfers.
Institutional involvement has been crucial in the country’s crypto uptake, with banks, fintechs, and payment providers integrating blockchain technology into their offerings.
Nevertheless, the Central Bank of Brazil remains cautious regarding the use of US dollar–backed stablecoins, expressing concerns that they may lead to volatility in capital flows and disrupt monetary policy.
“Capital flows become more volatile […] largely because nearly anyone can utilize stablecoins to transfer funds in and out of the country,” remarked Deputy Governor Renato Gomes of the Central Bank of Brazil earlier this year, according to Reuters.
Brazil also hosts several real-pegged stablecoins, such as BRL1, a consortium-supported token offered by exchanges like Bitso, and BRZ, issued by Transfero. Both are fully collateralized by fiat reserves and designed to maintain a 1:1 peg with the Brazilian real.
Related: Stablecoin market boom to $300B is ‘rocket fuel’ for crypto rally
