Brazil's central bank has implemented a comprehensive ban on virtual assets from settlement within regulated international payment rails. According to reports from CoinDesk, Banco Central do Brasil published Resolution BCB No. 561 on Thursday, updating rules for payment providers operating under the country's foreign exchange framework. The new rule specifically prohibits payments or receipts between eFX providers and foreign counterparties from using virtual assets, including cryptocurrencies and stablecoins for settlement purposes.
Despite the regulatory ban, a licensed banking institution in Brazil has deployed stablecoin infrastructure directly on the XRP Ledger. Braza Group, a regulated FX bank operating within Brazil's financial system, has minted approximately $90 million worth of its USD-backed stablecoin, USDB, entirely on XRPL. The bank has issued the token directly on XRPL rather than deploying it on alternative blockchain networks such as Ethereum, placing issuance, settlement, and transaction verification within a single high-performance ledger environment optimized for payments. This deployment represents one of the clearest examples yet of regulated stablecoin issuance directly on a public blockchain.
Braza has integrated its stablecoin operations into live cross-border settlement flows, moving beyond pilot testing into active financial use. The bank processes real FX-related transactions using USDB, enabling faster settlement cycles and reducing reliance on traditional correspondent banking structures. This approach strengthens liquidity efficiency and allows the institution to streamline international transfers through blockchain-based settlement rails, demonstrating how regulated entities can integrate tokenized assets into core financial workflows without compromising compliance frameworks.
The measure includes transitional rules for firms not yet listed as approved eFX providers. According to CoinDesk reports, these companies may continue operating if they seek central bank approval by May 31, 2027. However, they must follow the same settlement rule, with their payments and receipts also prohibited from using virtual assets. This provides a structured transition period while maintaining the regulatory framework.
Brazil has significantly increased oversight of crypto-linked payment flows as stablecoin use continues to expand. As reported by CoinDesk, BCB Governor Gabriel Galipolo previously stated that crypto use had risen in Brazil over recent years, with about 90% of flows linked to stablecoins. The central bank has been actively adding virtual assets to its financial and foreign exchange rulebook, including new rules for virtual asset service providers set in November 2025. The BCB has also conducted a comprehensive review of stablecoins issued outside its supervision, warning that real-denominated stablecoins issued beyond BCB oversight may affect regulatory equality and monetary sovereignty.
