Brazil Stablecoin Trading Surges After Election Shock

Brazilian companies turned heavily to dollar-backed stablecoins following the October 25 presidential runoff, with corporate accounts generating 78% of Mercado Bitcoin’s trading volume on election day as Luiz Inácio Lula da Silva defeated Flávio Bolsonaro, according to CryptoNews.

USDT turnover on Mercado Bitcoin rose nearly 800% from the previous Sunday, while Bitcoin trading climbed 865%. Companies used the exchange to manage exposure to the Brazilian real while conventional financial markets were closed, ahead of a steep selloff when trading resumed on Monday.

Market Reaction and Broader Trading

Following the election result, Brazil’s Ibovespa index plunged 14% in its worst session since March 2020, while the dollar gained more than 8% against the real. Market tracker Biscoint reported that across 10 monitored venues, USDT trading against the real climbed 150% from the previous Sunday, while USDC turnover rose 318%.

By Monday, combined USDT and USDC turnover reached 1.84 billion reais, approximately $350 million, or 65% above the comparable figure one week prior. Binance also reported a 370% increase in local-currency Bitcoin turnover as the real depreciated.

Key facts

• Corporate accounts generated 78% of Mercado Bitcoin's election-day trading volume.
• USDT turnover on Mercado Bitcoin rose nearly 800% week-over-week.
• Brazil's Ibovespa index dropped 14% following the election runoff.
• Combined USDT and USDC turnover reached 1.84 billion reais ($350 million) by Monday.