A fintech in São Paulo holds part of its working capital as BRZ to settle on-chain transactions. Between settlements the balance sits idle, and nearly every on-chain lending market pays in dollars. Can a company earn interest and borrow in Brazilian reais on-chain, without converting to dollars?
It can. With a Brazilian real stablecoin such as BRZ, a balance in reais can be supplied to lending protocols and liquidity pools that pay depositors and charge borrowers, at rates set by supply and demand. There is no bank in the middle and no deposit insurance, so smart contract, market and, for anyone who measures results in another currency, FX risk all have to be priced in.
What is on-chain BRL yield?
It is the interest paid on a balance of tokenized reais by credit protocols that run on a blockchain. The mechanics mirror traditional lending: on one side, depositors supply funds and earn interest; on the other, borrowers post collateral and pay interest to take a loan. The difference is that a smart contract, not a bank, holds the funds and applies the rules.
Those rules are public code. Rates adjust in real time to how much is supplied and borrowed, and the market does not close on weekends or holidays. Anyone can check the deposited and borrowed volumes on the protocol itself before committing a single real.
For this to work in reais, the real has to exist on the blockchain. That is the role of a BRL stablecoin: a token pegged 1:1 to the Brazilian real and backed by reserves. BRZ, the Brazilian real stablecoin, was launched by Transfero in 2019, is backed 1:1 in reais with redemption through regulated partners, and has its smart contracts published on 10 networks, including Ethereum, Polygon, Base and Solana.
Why does almost all of DeFi run in dollars?
Because almost all stablecoins are dollars. Of the USD 314.8 billion in stablecoins in circulation, 99.5% are pegged to the US dollar, according to DefiLlama data checked on October 13, 2026. Lending markets follow the money, so the deepest pools and the most quoted rates are in USDT and USDC.
For a company whose costs and revenues are in reais, that creates three problems:
1. Currency risk on idle cash
Converting reais to a dollar stablecoin to earn interest swaps one exposure for another. If the real appreciates while the balance is in dollars, the interest earned can be wiped out when the money comes back.
2. Two conversions on every cycle
Each round trip from reais to dollars and back adds spreads and fees. For working capital that moves every week, those costs add up quickly.
3. A mismatch with the business
A Brazilian platform that settles customers in reais, or a foreign company that bills Brazilian clients, keeps its accounts in reais. Holding the treasury in dollars on-chain makes reconciliation and reporting harder for no operational gain.
Why would a company look at it if banks already pay interest in reais?
On-chain BRL yield does not replace a bank account. It matters for companies that already operate on-chain, and for three practical reasons.
1. Hours and borders
An on-chain market does not depend on business days, a local bank branch or the holder's country of residence. A foreign company that earns revenue in Brazil can access the same market as a company in São Paulo, at any hour.
2. Transparent pricing
The rate of an on-chain market is published by the protocol itself, next to the volumes supplied and borrowed. There is no rate table negotiated case by case.
3. Programmability
A BRL balance on-chain connects to any application on the same network: payments, conversion, treasury tools. Interest becomes a building block of the product, not a separate account to manage.
If your platform already settles in BRZ and holds idle balances, see how Transfero's Crypto as a Service infrastructure connects Pix, BRZ and on-chain liquidity.
What can a company do with on-chain reais today?
Four uses are already live, with different risk profiles:
1. Hold value in reais on-chain
A BRZ balance keeps its value in reais, with 1:1 redemption through regulated partners and liquidity on exchanges and protocols.
2. Earn interest on a BRZ balance
BRZ can be supplied to lending markets and liquidity pools. Liquidity providers earn trading fees, and lenders earn interest paid by borrowers.
3. Borrow reais against digital assets
A company can post digital assets as collateral and borrow BRZ without selling its position. There is no credit analysis in the traditional sense: the loan is secured by the collateral locked in the contract, which can be liquidated if its value falls below the required level.
4. Settle cross-border payments
Tokenized reais can serve as a settlement rail between countries, with conversion into local currency at the end of the flow.
Where is BRZ available in DeFi today?
According to DefiLlama's yield dashboard, checked on October 13, 2026, BRZ markets are live on these venues:
Polygon: Curve, Uniswap and Morpho
Base: Aerodrome
Solana: Orca and Loopscale
Morpho and Loopscale are lending markets; the Morpho case is covered in how BRZ works as collateral and credit on Morpho. Curve, Uniswap, Aerodrome and Orca are liquidity pools, where BRZ is paired with other assets and earns a share of trading fees. Pools change often, so check the venue directly before allocating.
How would a company put BRL to work on-chain? An example
A Brazilian fintech holds BRL 2 million of its own working capital as BRZ to settle transactions. Its treasury policy allows up to 25% in on-chain lending markets. The values below are illustrative.
The company buys BRZ with Pix through a regulated provider. Here, BRL 2 million becomes 2 million BRZ.
It transfers BRL 500,000 in BRZ to a wallet controlled by its treasury, on Polygon.
It supplies the 500,000 BRZ to a lending market. The rate shown on the protocol before the deposit is variable and changes with demand.
The remaining BRL 1.5 million stays liquid for settlement.
When cash is needed, the treasury withdraws the BRZ plus accrued interest and, if needed, converts back to reais via Pix.
This example uses the company's own treasury. Using customer balances raises separate regulatory questions and should be assessed with legal counsel first.
What does a company need to get started?
A wallet on a network where BRZ is available, with internal rules on who holds the keys or a custody provider
BRZ, bought with Pix through a regulated provider or on partner exchanges
A protocol or pool that accepts BRZ, checked for audits, track record and liquidity
A treasury policy that sets limits per protocol, per network and in total
When BRZ moves between a virtual asset service provider (VASP, or PSAV in Brazil) and a self-custody wallet, the provider must identify the wallet's owner and verify the origin and destination of the assets, under BCB Resolution No. 521, of November 10, 2025.
What are the risks?
On-chain yield is not a bank deposit. There is no deposit insurance, and the main risks are:
Smart contract risk: a flaw in the protocol's code can cause losses. Public audits and years of operation reduce this risk but do not remove it.
Market risk: rates move with supply and demand, and a thin pool can make it costly to exit a large position.
Collateral risk: for borrowers, a drop in the value of the collateral can trigger liquidation.
Currency risk: for companies that report in another currency, a BRL balance carries exposure to the real.
Companies that want to offer BRL yield to their own customers face another question: depending on how it is structured, the offer may fall under the rules of Brazil's securities regulator (CVM) or of the Central Bank. That framing needs legal review before launch.
How does Transfero support companies that operate in reais on-chain?
Transfero issues BRZ and provides the infrastructure to move between reais and the blockchain. Platforms, wallets and fintechs use it to hold, settle and connect BRL balances to on-chain applications without building the fiat side themselves. The same BRZ that settles a payment can be supplied to a lending market, without a currency conversion in between.
Crypto as a Service (CaaS): BRL on- and off-ramps through Pix, with custody powered by Fireblocks
BRZ: backed 1:1 in reais, redemption through regulated partners and independent audits by Parsiq
Multi-network: BRZ contracts published on 10 networks, including Ethereum, Polygon, Base, Arbitrum and Solana
Liquidity: BRZ works as the BRL settlement layer for conversion between fiat and digital assets
Questions to ask before putting BRL to work on-chain
Is this the company's own treasury, or are customer balances involved?
Who holds the wallet keys, and what are the internal approval rules?
Has the protocol been audited, and for how long has it been operating?
How deep is the pool, and how much can be withdrawn without moving the price?
What is the limit per protocol and per network in the treasury policy?
How will interest be recorded in the accounts and taxed?
Does any part of the plan require regulatory review?
Talk to Transfero's team about using BRZ in your treasury or product: get in touch.
Frequently asked questions
Is on-chain yield the same as a bank deposit?
No. A bank deposit has a counterparty and, in Brazil, can be covered by deposit insurance (FGC) up to a limit. On-chain yield is paid by a protocol that runs on public code, with no insurance. Rates are variable, and the risks of the contract and of the market are borne by whoever supplies the funds.
Who sets the interest rate?
The protocol, through a public formula based on supply and demand. When more reais are borrowed relative to what is supplied, the rate rises; when supply grows, it falls. The current rate and the volumes are visible on the protocol before any deposit.
Can funds be withdrawn at any time?
In most lending markets and pools there is no lock-up period, so funds can be withdrawn whenever liquidity is available. In a heavily used market, part of the supply may be lent out, and a large withdrawal may have to wait until borrowers repay or new deposits arrive.
Do I need to convert reais into dollars to use DeFi?
Not for the markets that accept a BRL stablecoin. BRZ keeps the balance in reais from the Pix deposit to the protocol and back, which avoids two currency conversions and exposure to the dollar. Dollar markets are deeper, so the choice depends on the currency in which the company keeps its accounts.
