Conduit Partners with Braza Group for Real-Time FX Swaps Using Stablecoins

Conduit, a stablecoin-focused cross-border payments provider, has partnered with Brazil's Braza Group to facilitate real-time foreign exchange (FX) swaps between the Brazilian real and major foreign currencies using stablecoins. This collaboration aims to revolutionize cross-border payments by significantly reducing transaction settlement times.

The new service enables users to convert Brazilian real to U.S. dollars or euros and settle transactions in minutes. This is a stark contrast to traditional FX systems, where settlement can take up to a few days. The partnership leverages stablecoins, which are cryptocurrencies whose values are typically pegged to fiat currencies, to achieve this efficiency.

Braza, which owns Brazil’s largest FX bank and processed a substantial volume of transactions last year, launched its own real-pegged stablecoin, BBRL, on the XRP Ledger earlier this year. When a payment originates in Brazil, Braza mints BBRL tokens. Conduit then swaps these BBRL tokens for dollar- or euro-pegged stablecoins and delivers the funds to the recipient’s bank or wallet abroad.

Stablecoins have emerged as one of the fastest-growing sectors in the cryptocurrency space. Their use in cross-border payments and remittances is expanding rapidly, particularly in developing markets where traditional banking channels can be costly or unreliable. This growth is driven by the need for faster, more efficient, and cost-effective payment solutions.

According to the analyst's forecast, the stablecoin sector could grow significantly by 2030, driven by increasing adoption and regulatory support. U.S. lawmakers are also pushing forward stablecoin-specific regulation, encouraging businesses and financial institutions to explore ways to use stablecoins for payments.

Conduit CEO Kirill Gertman highlighted the transformative potential of this technology, stating, "Creating seamless on-ramps between fiat and digital currencies, together with on-chain stablecoin FX swaps, has the potential to completely transform how cross-border payments are made." Conduit provides infrastructure that bridges blockchains and traditional financial rails, facilitating the integration of stablecoins into the existing financial system.

The Boston-based startup recently raised $36 million and reported an annualized transaction volume of $10 billion, underscoring the growing demand for stablecoin-based payment solutions. This partnership with Braza Group is a significant step towards making cross-border payments more efficient and accessible, particularly in regions with developing financial infrastructure.