Brazilian youth prefer stablecoins: how Generation Z is transforming the cryptocurrency market

The Brazilian cryptocurrency market is undergoing a significant transformation, not due to speculative hype, but thanks to the strategic choices of the younger generation of investors. Youth under 24 years old are becoming the main drivers of digital asset adoption, opting for low-volatility instruments. Stablecoins and tokenized bonds serve as their entry point into the crypto investment world, offering a balance between innovation and financial security.

According to the latest report from the local crypto exchange Mercado Bitcoin, titled “Raio-X do Investidor em Ativos Digitais” and presented to media partners, this age group has become the fastest-growing segment of the investor community over the past year. Their market participation increased by 56% compared to the previous period, indicating a major shift in investment approaches.

Stablecoins and income tokens: the new generation of investors’ choice

The nature of youth investment activity is fundamentally different from the traditional image of a trader-speculator. Instead of aggressive bets on high-flying altcoins, young investors choose a conservative approach: stablecoins provide stability, and digital debt instruments offer predictable income.

The Renda Fixa Digital (RFD) platform — which translates to “Digital Fixed Income” — has already become the center of this transformation. It allows investors to acquire tokenized shares of real assets generating profit. Throughout 2025, the trading volume of RFD more than doubled, with a total distribution amount of 1.8 billion Brazilian reais (approximately 325 million US dollars). These products showed an average yield of 132% of the country’s benchmark rate — Certificado de Depósito Interbancário (CDI), significantly exceeding traditional financial instruments.

Mercado Bitcoin, in its analytical approach, called this strategy part of the “invisible blockchain” philosophy — an approach where technology operates in the background, enabling users to invest without needing a deep understanding of distributed ledger mechanics.

Fixed-income digital assets soar on the ecosystem

Mercado Bitcoin is not the only player in this growing market. Other platforms in Brazil are also developing similar blockchain-based products. Companies Liqi and AmFi position themselves as alternative providers of tokenized fixed-income assets, creating a competitive environment that fosters innovation.

The total volume of cryptocurrency transactions showed a 43% annual growth, indicating market maturation. An interesting trend: Monday has become the most active day for both newcomers and experienced traders. This suggests a shift in perception of cryptocurrencies: from periodic speculative enthusiasm to an integrated part of citizens’ weekly financial activities.

Different income levels — different investment approaches

Analysis of investor behavior revealed a clear picture: the strategy for choosing financial instruments directly depends on the investor’s income level.

Middle-income groups prefer diversification through stablecoins, allocating up to 12% of their portfolio to them, while 86% of funds remain in low-volatility assets — mainly tokenized bonds. This approach reflects a desire for stability and predictable income.

Low-income investors follow a fundamentally different tactic: over 90% of their capital is directed into traditional cryptocurrencies, including Bitcoin. This choice is explained by the pursuit of higher potential returns and a willingness to accept additional financial risks, according to the data collected.

“Significant events such as cryptocurrency regulation initiated by the Central Bank and the expansion of stablecoin use have further strengthened Brazilians’ interest in digital assets,” noted Mercado Bitcoin analysts in their conclusion.

Regulation as a catalyst for development and trust

The Central Bank of Brazil recently issued an updated regulatory framework for the crypto sector, requiring service providers to obtain licensing and setting specific capitalization thresholds. This step has helped strengthen trust in the market among conservative investors and created a more transparent ecosystem.

Such regulation has been a critical factor for Generation Z: young investors tend to be more sensitive to security and legality issues regarding their financial operations. In this context, stablecoins become even more attractive — stable, regulated instruments capable of providing both financial benefits and peace of mind.