COINDESK · 2026-10-27 16:59 UTC

Brazilian companies turned to stablecoins on election day to dodge a currency crash

Brazilian companies rushed to buy stablecoins USDT and USDC on election day after Lula unexpectedly won, with corporate accounts generating 78% of trading volume on Mercado Bitcoin and USDT turnover jumping 800% from the previous week. Concerns about Lula's fiscal policies - increased social spending and betting ban - sparked fears of currency pressure on the real, prompting companies to dollarize assets through stablecoins as a hedge. The next day, the Ibovespa stock index crashed 14% and the dollar surged over 8% against the real, validating corporate concerns about the election outcome.

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