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Stablecoins rarely get credit for hedging sovereign risk, yet when Lula’s surprise win threatened Brazil’s finances, it was corporate treasuries, not retail traders, who rushed to dollarize on crypto rails while traditional markets stayed shut.
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In Today’s Edition:
**Headline:Brazil Firms Dollarize Through StablecoinsQuick Bites:**RedotPay IPO?**Yield of the Week:**SharpByte AUSD Tori Ecosystem’s 12.14% APY
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HEADLINE
**State of play: **Brazilian corporate treasuries used crypto rails as an after-hours dollar desk on election Sunday, hedging fiscal risk from Lula’s surprise runoff win over Flávio Bolsonaro hours before traditional markets could reopen and price it in.
Corporate clients drove 78% of Mercado Bitcoin’s Sunday volume, with USDT turnover up nearly 800% and bitcoin up 865% week over week.
The hedge paid off Monday as the Ibovespa fell 14%, its worst day since March 2020, and the dollar jumped over 8% against the real.
Across 10 venues tracked by Biscoint, Monday USDT and USDC turnover against the real hit 1.84B reais ($350M), up 65% on the prior week.
The surge was purely local, with Binance’s BTC/BRL volume rising 370% while the global BTC/USDT pair dropped 25%.
Prediction markets badly misread the race, as Kalshi gave Bolsonaro 84% odds a day before the vote despite polls showing a tight contest.
**What’s Next: **Watch whether corporate stablecoin balances stay elevated as Lula’s spending agenda runs into a stronger opposition in Congress, and whether Brazilian regulators start treating these flows as capital flight.
**Why it Matters: **Stablecoins worked as a live 24/7 FX hedge for emerging-market corporates while legacy venues sat closed, a use case far stickier than retail speculation.
**Our Take: **The real signal is that crypto priced Brazil’s currency shock a full session before the official market did, making stablecoins a shadow FX desk.
QUICK BITES
RedotPayweighsconfidential US IPO filing by year-end.Brazilian companiesturnedto stablecoins on election day to dodge crash.RobinhoodtapsRipple’s $2.5B RLUSD stablecoin despite backing rival USDG.Japan’s top yen stablecoinfalls shortof its target in a disappointing first year.
YIELD OF THE WEEK
The vaultaccepts AUSD deposits and provides exclusive exposure to Tori ecosystem markets on Monad, earning yield backed by delta-neutral strategies, with ~$7.21M in total deposits at 91.87% utilization.Capital is fully deployed into a single strUSD/AUSD market at 86% LLTV with 100% allocation, with a secondary PT-strUSD-4FEB2027 market currently at 0% allocation.
Yield is generated from lending demand within the Tori ecosystem, delivering a 12.14% APY (9.64% native + 2.50% WMON incentives) at a 10% performance fee and 0% management fee.
The vaultaccepts USDC deposits and provides exposure to high-yield RWA and collateral on the Monad ecosystem, with ~$1.75M in total deposits at 90.14% utilization.Capital is fully deployed into a single PT-USDat-14JAN2027/USDC market at 91.5% LLTV with 100% allocation, with a secondary eTPLUS market currently at 0% allocation.
Yield is generated from fixed-rate lending demand against Pendle PT collateral, delivering an 8.33% APY (6.53% native + 1.80% WMON incentives) at a 10% performance fee and 0% management fee.
The vaultaccepts USDC deposits and allocates capital across InfiniFi-curated strategies on Euler Finance, with ~$156.92k in total supply and $59.17k in available liquidity.Capital is deployed across 4 active strategies, curated by InfiniFi with 0% performance fees.
Yield is generated from lending activity across the vault’s strategy allocation, delivering an 8.27% APY at 0% performance fees.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
