Former head of the Central Bank of Brazil launches BRD — a new stablecoin for sales representatives and institutional investors

Tony Volpon, who has worked for many years as a key representative of Brazil’s financial sector at the Central Bank, has introduced an ambitious project to open access for foreign investors to the country’s high-yield assets. His initiative is the issuance of the BRD stablecoin, which promises to revolutionize the way international traders and financial institutions interact with the Brazilian bond market.

Solving the access problem: from theory to practice

Banks and investors around the world have long been interested in Brazilian assets, but practical access remains difficult. Volpon appeared on the “Crypto to Real” program on CNN Brasil, where he detailed the obstacles faced by foreign market participants: regulatory requirements, currency barriers, and lack of proper infrastructure.

“It was necessary to create a tool that would allow holders to receive rewards in the form of interest rates that Brazil offers in its market — especially for institutional investors seeking high returns and reliability,” characterized the goal of the project by the financial innovation representative.

The current refinancing rate of the Central Bank of Brazil is 15%, significantly exceeding the Federal Reserve’s target range (3.5–3.75%). This huge difference makes Brazilian assets extremely attractive for international portfolios.

Government bonds as a guarantee of stability

The architecture of BRD is built on a solid foundation — bonds of the National Treasury of Brazil. Each token will be backed by government debt, linking its value to the country’s sovereign credit and providing direct exposure to Brazilian interest rates.

This structure offers dual benefits. First, holders gain access to income that was previously available only to local or large international players with established channels. Second, expanding the investor base through the stablecoin could create additional demand for government bonds, potentially reducing borrowing costs for the state.

The competitive landscape of Brazilian crypto tokens

BRD enters a market where several projects with similar concepts are already operating. The market leader is BRZ from Transfero, which has attracted a capitalization of $185 million. Followed by BBRL with a market valuation of $51 million.

There are also other smaller alternatives: BRL1, supported by a consortium including Brazilian exchanges Mercado Bitcoin and Bitso, as well as cREAL — the native token of the Celo ecosystem. Each of these projects offers its own approach to accessing Brazilian assets.

However, BRD positions itself as the first token explicitly structured to distribute returns from government debt among its holders. This distinguishes it from competitors and highlights Volpon’s innovative approach.

The intensifying competitive race

The Crown project, funded by the venture fund Paradigm, is also developing its stablecoin BRLV with a similar yield concept. In December last year, the startup raised $13.5 million in a Series A round, indicating growing interest in this area.

At the time of writing, BRLV had approximately $19 million in circulation. However, according to blockchain data, this token is concentrated in the hands of only two holders, indicating an early stage of distribution.

Macroeconomic implications and opportunities

If BRD succeeds in attracting a significant volume of foreign capital, it could impact the broader Brazilian economy. Increased demand for government bonds through crypto instruments may help reduce borrowing burdens for the public budget, which is critical for long-term financial stability.

Volpon, acting as a trade representative of the new paradigm of interaction between cryptocurrencies and traditional finance, sees BRD as a bridge between these two worlds. His project demonstrates how blockchain technology can be applied not for speculation but for practically expanding access to traditional financial assets.

The future will show how successful this ambitious experiment will be and whether BRD can displace existing competitors by offering truly innovative solutions for international investors.