L-BRL: The Brazilian Stablecoin with Privacy
How L-BRL combines Real stability with native privacy from the Liquid Network.
What is L-BRL?
L-BRL is a stablecoin pegged 1:1 to the Brazilian Real (BRL), issued by Liqora on the Liquid Network. Each L-BRL token is backed by equivalent reserves in BRL, held in regulated Brazilian financial institutions. Unlike most stablecoins that operate on public blockchains where every transaction is visible, L-BRL leverages Liquid's Confidential Transactions to keep transfer amounts private by default.
This combination of stability, privacy, and speed makes L-BRL uniquely suited for the Brazilian crypto ecosystem and cross-border payments involving BRL.
Why Brazil Needs a Privacy-First Stablecoin
Brazil has one of the most active crypto markets in the world. In 2025, the country saw over $100 billion in crypto transaction volume, with stablecoins accounting for a significant portion. Yet most stablecoins used in Brazil — USDT, USDC — are dollar-denominated, creating unnecessary FX exposure for businesses that operate in Reais.
Additionally, these stablecoins operate on transparent blockchains like Ethereum and Tron, where every transaction amount is publicly visible. For businesses, this transparency can be a liability:
Competitors can track payment flows and infer business relationships.
Front-running becomes possible when large transactions are visible in the mempool.
Sensitive financial data is permanently recorded on a public ledger.
L-BRL solves both problems simultaneously: it's denominated in BRL (eliminating FX risk for Brazilian operations) and transactions are confidential by default (protecting business privacy).
How L-BRL Works
Issuance and Redemption
The L-BRL lifecycle is straightforward:
Minting: When a verified partner deposits BRL via PIX to Liqora's reserve account, the equivalent amount of L-BRL is minted on the Liquid Network and sent to the partner's Liquid wallet.
Transfer: L-BRL can be transferred between any Liquid wallets. Each transfer settles in approximately 2 minutes with full confidentiality.
Redemption: Partners can redeem L-BRL back to BRL at any time. The tokens are burned, and the equivalent BRL is sent via PIX to the partner's bank account.
Technical Architecture
L-BRL is issued using Liquid's native asset issuance functionality. Key technical details:
Asset ID: A unique identifier on the Liquid Network that identifies L-BRL tokens.
Reissuance Tokens: Controlled exclusively by Liqora, allowing new L-BRL to be minted as reserves grow.
Confidential Amounts: All L-BRL transfers use Confidential Transactions. Only the sender and receiver know the exact amount transferred.
Verifiable Supply: While individual transactions are private, the total circulating supply of L-BRL can be audited on-chain.
L-BRL vs Other Stablecoins
| Feature | L-BRL | USDT (Tron) | USDC (Ethereum) | DREX (CBDC) |
|---|---|---|---|---|
| Currency | BRL | USD | USD | BRL |
| Privacy | Confidential | Public | Public | Government-controlled |
| Settlement | ~2 min | ~3 sec | ~12 sec | TBD |
| Self-custody | Yes | Yes | Yes | No |
| Network | Liquid (Bitcoin) | Tron | Ethereum | Hyperledger |
The key differentiators for L-BRL are native privacy and BRL denomination. While DREX (Brazil's upcoming CBDC) will also be BRL-denominated, it will be operated by the Central Bank with full transaction visibility — the opposite of L-BRL's privacy-first approach.
Use Cases
B2B Payments
Companies can settle invoices in L-BRL without exposing payment amounts on a public ledger. This is particularly valuable for supply chain payments where pricing information is sensitive.
Cross-Border Remittances
Brazilian workers abroad can send L-BRL to family in Brazil, who can instantly redeem to BRL via PIX. The entire flow — from conversion to delivery — takes minutes instead of days.
Trading and OTC Desks
OTC desks can use L-BRL to settle large trades without the risk of front-running or public exposure of order flow.
Treasury Management
Companies holding digital assets can park funds in L-BRL to avoid USD exposure while maintaining the benefits of blockchain-based settlement.
Security and Compliance
Liqora takes a compliance-first approach to L-BRL:
KYB/KYC: All partners undergo thorough verification before accessing L-BRL minting and redemption.
Reserve Audits: BRL reserves backing L-BRL are held in regulated Brazilian financial institutions and subject to regular audits.
Transaction Monitoring: While transaction amounts are confidential on-chain, Liqora maintains internal records for compliance purposes.
Regulatory Alignment: L-BRL is designed to comply with Brazilian crypto regulations, including the Marco Legal das Criptomoedas (Law 14,478/2022).
The Future of L-BRL
L-BRL is more than just a stablecoin — it's infrastructure for a new kind of financial system. As the Liquid Network grows and more businesses adopt privacy-preserving digital assets, L-BRL will serve as the BRL on-ramp and off-ramp for this ecosystem.
We're actively working on expanding L-BRL's utility: deeper integration with Brazilian payment systems, partnerships with international exchanges, and tools that make it easier for developers to build applications on top of L-BRL.
The vision is simple: anyone should be able to use Brazilian Reais in the digital asset ecosystem with the same privacy and speed they expect from cash — but with the programmability and auditability of blockchain technology.