Brazilian businesses turn to stablecoins to hedge currency risk around election
Brazilian corporate treasuries turned heavily to dollar-pegged stablecoins and bitcoin during the country's election, driving a near 800% surge in USDT volume on Mercado Bitcoin.
Brazilian companies moved aggressively into stablecoins to protect themselves against election-related market uncertainty and potential currency crashes, according to reporting by CoinDesk and crypto.news. Businesses turned to dollar-pegged digital assets to manage exposure to swings in the Brazilian real on election day.[1][3]
Trading activity climbed across major crypto platforms. On Brazilian exchange Mercado Bitcoin, USDT volume jumped nearly 800% compared with the previous Sunday, while bitcoin volume rose 865%. Corporate clients accounted for 78% of the platform's total trading as companies moved to protect their treasuries, Coin Bureau reported. In addition, Binance's USDT/BRL market tripled in volume even as the broader global BTC/USDT pair fell.[2][3]
The hedging came amid widespread market disruption, with election turmoil causing Brazilian stocks to plunge 19%, according to Coin Bureau. Following Luiz Inácio Lula da Silva's victory, combined turnover for USDT and USDC across tracked exchanges climbed to $350 million on Monday, marking a 65% increase from the prior week.[2]
Key facts
- USDT trading volume on Mercado Bitcoin jumped nearly 800% on election day compared to the prior Sunday.
- Bitcoin trading volume on Mercado Bitcoin rose 865% on election day.
- Corporate clients generated 78% of Mercado Bitcoin's total trading volume.
- Binance's USDT/BRL pair tripled in volume on election day while the global BTC/USDT pair declined.
- Combined USDT and USDC turnover across tracked exchanges hit $350 million on Monday, up 65% week-over-week.
- Brazilian stocks plunged 19% amid election turmoil.
Sources · 3 sources
- CN
crypto.news@cryptodotnewsPost on X ·
JUST IN: Brazilian companies turned to stablecoins to hedge currency volatility on election day Businesses reportedly used dollar-pegged digital assets to manage exposure to swings in the Brazilian real amid election-related market uncertainty. https://t.co/tYLk1EW3qs
Open source - CB
Coin Bureau@coinbureauPost on X ·
🚨BREAKING: Brazilian companies rush into stablecoins as election turmoil sends stocks plungin-g 19%. USDT trading on Mercado Bitcoin jumped nearly 800% on election day compared with the previous Sunday. Corporate clients accounted for 78% of the exchange’s total trading as businesses sought to protect their treasuries. Following Lula’s unexpected victory, combined USDT and USDC turnover across tracked exchanges reached $350 MILLION on Monday, up 65% from the previous week.
Open source - CO
CoindeskArticle ·
Brazilian companies turned to stablecoins on election day to dodge a currency crash USDT volume on crypto exchange Mercado Bitcoin jumped nearly 800% and bitcoin volume surged 865%. Binance’s USDT/BRL market tripled while the global BTC/USDT pair fell.
Open source