Overseas fund access to Brazilian real exposure on-chain

An overseas digital asset fund can access Brazilian real exposure on-chain through BRLV, a stablecoin issued by Crown and pegged 1:1 to the Brazilian real. Crown describes foreign institutions as one of its client profiles: institutions outside Brazil that look for exposure to the real and to Brazilian interest rates (carry trade) through on-chain rails. This page describes how that access works according to Crown’s documentation. It does not compare other providers.

What the exposure is

BRLV is an on-chain token pegged 1:1 to the Brazilian real and backed entirely by Brazilian federal government bonds. For each BRLV in circulation, Crown holds R$ 1.00 in reserves made up entirely of Brazilian federal government bonds, specifically Letras Financeiras do Tesouro (LFTs, also called Tesouro Selic), registered in the SELIC system. The token works 24 hours a day, 7 days a week. Crown says foreign institutions use BRLV to access, around the clock, exposure to the real and to Brazilian interest rates, at low operational cost. The token itself is not remunerated: 1 BRLV is always worth R$ 1.00. The comparison with the traditional route is in accessing Brazilian real carry trade on-chain versus a non-resident account.

The friction Crown targets

Crown describes the traditional access to Brazilian real exposure as costly, bureaucratic (it can take months to open accounts), limited to Brazilian business hours and hard to unwind. Its stated current geographic focus for this profile is Asia, specifically South Korea, Japan and Singapore.

Entry and exit

Crown serves Brazilian and foreign clients, and every client goes through identity verification (KYC for individuals, KYB for companies), sanctions and politically exposed person screening, ultimate beneficial owner mapping and source-of-funds review. In the primary market, a registered client deposits reais through Pix or USDC and converts the balance into BRLV at R$ 1.00 per BRLV. Through Crown FX, the client can convert between reais (BRL or BRLV) and the dollar stablecoins USDC and USDT, in minutes, 24/7, in both directions. To exit, the client requests redemption through Crown’s interface or API, at R$ 1.00 per BRLV.

Structure and verification

Reserves are held in a bankruptcy-remote structure, segregated from Crown’s assets, and a Collateral Agent that is independent of Crown represents BRLV holders. Reserve balances, composition and the collateralization ratio, kept at no less than 100% of BRLV in circulation, are attested every business day by Fact Finance and published on Crown’s transparency page. The smart contracts are audited periodically by OpenZeppelin. The BRLV token is issued under the ERC-20 standard on Ethereum, Base and Tempo, and the official contract addresses are in the whitepaper at docs.crown-brlv.com.

Risks and regulatory status

Crown describes regulatory, stablecoin depegging, technology and smart contract, tax and transaction irreversibility risks, and states that it does not promise absolute security or any financial result. Crown is a virtual asset service provider (VASP) under Brazilian Law No. 14,478/2022. It has filed an authorization request with the Central Bank of Brazil and operates under the transition regime set by the regulator, as informed by Crown in September 2026. The checks a foreign institution should run on eligibility and redemption are in eligibility and redemption risks a foreign institution should check before holding a BRL stablecoin, and the entry and exit mechanics for a desk are in entering and unwinding a Brazilian real position on-chain.