Brazil Approves First Spot XRP ETF Amidst Ripple’s Expanding Influence

Jimmy Aki
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On February 19, Brazilian regulator approved the inaugural spot XRP ETF. This approval positions Brazil as a leader in Latin America’s cryptocurrency investment landscape.

Brazilian Regulator Approves Spot XRP ETF

Brazil’s securities authority, the Comissão de Valores Mobiliários (CVM) authorized the spot XRP ETF.

Managed by Hashdex, the Hashdex Nasdaq XRP Index Fund aims to provide investors with direct exposure to XRP, the digital asset associated with Ripple Labs.

While the official trading date on Brazil’s B3 exchange remains pending, Hashdex has committed to releasing further details soon. This development coincides with XRP’s price experiencing a 7.8% surge, reaching $2.72 at press time. The asset is now approximately 20% below its all-time high, reflecting renewed investor interest.

In contrast, the United States Securities and Exchange Commission (SEC) has acknowledged several spot XRP ETF filings from Nasdaq and Cboe BZX exchanges on behalf of entities like CoinShares, Canary Capital, and WisdomTree.

However, these proposals are still under regulatory review, highlighting Brazil’s proactive stance in embracing cryptocurrency investment products.

In a parallel development, Braza Group, a prominent player in Brazil’s interbank market, has announced plans to launch a stablecoin pegged to the Brazilian real on the XRP Ledger. Dubbed BBRL, this stablecoin will be backed by Braza Bank, which specializes in foreign exchange services and international payments.

Initially, BBRL will be available exclusively to institutional clients, with plans to expand to business-to-consumer markets in the future.

Braza Group Introduces Real-Pegged Stablecoin on XRP Ledger

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

The launch is slated for the first quarter of 2025, with ambitious goals to capture about 30% of the Brazilian market by the end of the year.

Markus Infanger, senior vice president at RippleX, highlighted the broader implications of this initiative: “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.”

Braza Group’s involvement extends to DREX, a blockchain initiative by Brazil’s central bank focused on asset tokenization, cross-border payments, and exploring a potential central bank digital currency (CBDC).

This participation underscores the growing trend of financial institutions leveraging blockchain technology to enhance financial services.

These developments come at a time when Brazil’s central bank chief, Gabriel Galipolo, noted a significant increase in crypto asset usage within the country.

Approximately 90% of this activity is linked to stablecoins, indicating a robust demand for digital assets pegged to traditional currencies.

Grayscale’s recent move to seek approval for XRP ETF and Dogecoin ETFs further highlights the growing push to integrate digital assets into traditional finance. The SEC’s acknowledgment of these applications signals a shift in regulatory discussions, as institutions continue to explore structured investment products for cryptocurrencies.

If approved, these ETFs could provide investors with easier access to XRP ETF and Dogecoin, reinforcing the trend of mainstream adoption.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.