The Brazilian Stock Exchange, or B3 in short, acknowledged its plans to debut in the rapid-growing crypto segment, starting with Bitcoin Futures Trading within the upcoming 6 months. The decision was confirmed by André Milanez, the Chief Financial Officer of the Exchange.
Bitcoin Futures Trading in Brazil
While Milanez did not elaborate further on the product details or possibilities of partnership or direct offerings. The only thing confirmed was the short timeline of the product release. He issued a short statement, “We plan to launch bitcoin futures in the next three to six months,” in regards to the product.
Retail and institutional investors in Brazil can trade through eleven Crypto Exchange Traded Futures(ETFs) through the B3 exchange at present. All of them are in collaboration with approved crypto exchanges around the world. The Securities and Exchange Commission(CVM) in Brazil has granted its approval to additional twenty-five investment funds that offer investors various types of crypto exposure.
Rising Crypto Prominence Across Brazil
B3’s IT Director Jochen Mielke de Lima had already issued a statement regarding the exchange’s plans to develop and launch multiple trading options with cryptocurrency exposure way back in January 2022. BTC and ETH futures were also included among the trade products. The executive had also disclosed that cryptocurrencies were under the exchange’s radar from as early as 2016.
The main bone of contention was in regards to settlement. The exchange needed to figure out the most feasible solution for negotiations- whether to settle in US Dollars or Brazilian Real. A reference index is necessary for Futures Contracts, and opting for the latter would require creating a crypto-Real index. The representative also mentioned B3’s ongoing work on searching ways for the provision data inputs of the Digital Real, Brazil’s upcoming central bank digital currency(CBDC).
B3: Plans for Central Standardization
In addition to the aforementioned crypto futures, B3 is looking forward to facilitating operations between existing national crypto exchanges within Brazil.
Mielke e Lima states,
“We have around 30 national crypto exchanges, apart from the international ones that operate here. We could offer a service to facilitate and standardize their operations. I believe it has something to explore in providing custody services and in the settlement process.”
Additional Product Launches
B3 also has plans for additional blockchain and crypto product launches this year. The list includes asset tokenization platforms, crypto trading, crypto custody, and other services.
“Trading and access to liquidity centers: this means mitigating the complexities of accessing a fragmented, global and 24×7 market; Digital Asset Custody: providing reliable custody (hence, purpose of blockchain transactions); Over-the-counter facilitation: thIn this way, it wants to provide more security and efficiency in the movement and DVP of digital assets; Capital efficiency gains: thus, it wants to mitigate the pre-funded nature of operations and Crypto as a service: make it easier for clients to explore the crypto market with low friction,” mentioned B3.
The growing preference for cryptocurrencies among Brazilian investors has not gone unnoticed. The Brazilian Stock Exchange’s plans reflect a shift in focus towards digital assets. This is good news for the growing number of Brazilian crypto owners seeking ways to leverage growth and opportunities through virtual assets.