- Brazilian fintech Crown has raised US$8.1 million to launch BRLV, a real-denominated stablecoin backed by Brazilian government bonds offering 14% yields to global investors.
- Crown’s model differs from traditional stablecoins by sharing interest income with institutional partners rather than retaining all earnings for the issuer.
- Bernstein analysts predict USDC will become the dominant global stablecoin under new US regulations, with its market share growing from 27% to 33% by 2027.
- The overall stablecoin market is forecast to reach US$670 billion by 2027, more than doubling from its current US$312.2 billion market capitalisation.
Stablecoins continue to make headlines amid a crypto market clouded by uncertainty after recent crashes have shaken investor confidence. First, a new Brazilian stablecoin is creating excitement, and now Bernstein analysts have made some bold forecasts for USDC.
Brazilian fintech Crown has raised US$8.1 million (AU$12.45 million) to launch BRLV, a real-denominated stablecoin backed by government bonds, giving global investors streamlined access to Brazil’s lucrative 14% sovereign yields.
Though the BRLV stablecoin doesn’t let foreigners own Brazilian bonds, it gives them a digitally native instrument whose reserves are those bonds. The yield and price stability come from that reserve base, meaning it tokenises exposure to Brazil’s interest rate environment in a liquid, crypto-native format.
John Delaney, Crown’s co-founder and CEO, told Cointelegraph that they believe “the safest way to manage stablecoin reserves and ensure every token is fully backed is to invest those reserves in government bonds.”
Delaney added that, rather than keeping the earnings for themselves, they plan to share them with customers:
Whereas most stablecoin issuers retain this income for themselves, we wanted to make the model fairer for our institutional partners through an income-sharing mechanism.
John Delaney, CrownRelated: Citi Steps Into Crypto: Banking Giant to Launch Digital Asset Custody by 2026
Analysts See USDC Influence Grow Amid New Law
At the same time, analysts at Bernstein forecast that Circle’s USDC will strongly benefit under new U.S. regulations, with supply expected to triple by 2027 as demand for compliant, yield-integrated digital currencies accelerates across both developed and emerging markets.
Currently, USDC makes up 27% of the stablecoin market, and the analysts expect this to rise to 33% by 2027. They also forecast that the stablecoin market could be worth US$670 billion (AU$1 trillion) by 2027 — at the time of writing, the stablecoin market cap is US$312.2 billion (AU$480 billion), according to CoinGecko.
Bernstein believes USDC could reach a US$220 billion (AU$338.7 billion) market cap by 2027, up from US$76.2 billion (AU$117.3 billion) currently. The largest stablecoin, Tether’s USDT, currently sits at a US$180 billion (AU$277 billion) market cap.
The GENIUS Act, a new U.S. stablecoin law, was signed by President Donald Trump in July after clearing the House with rare bipartisan support. Following the new law, Tether announced it would launch a U.S.-focused institutional stablecoin, as competition in the American stablecoin market heats up.
Related: Amundi Eyes Bitcoin ETN Launch, Signaling Major Shift in European Institutional Adoption
