Brazil’s largest crypto exchanges—Mercado Bitcoin, Foxbit, and Bitso—have united to push a Brazilian Real-pegged stablecoin-the BRL1.

As of an October 8 Valor report, BRL1 is set to launch in 2023 and be offered on the Ethereum-Powered Polygon blockchains.

Digital bank Cainvest plans to provide liquidity for the trades involving Bitcoin and Ethereum on BRL1, while further markets are still expected to follow.

According to Fabricio Tota, the Director of Business at Mercado Bitcoin, BRL1 would serve to ease transactions between local exchanges and crypto purchases and sell without touching on traditional fiat systems. “The stablecoin’s goal is to connect the traditional banking system and the world of crypto. The one thing that allows such connections processes to take place is the introduction of a real cryptocurrency, backed by heavyweight market players,” he told Valor, hinting that the BRL1 could further attract mainstream users.

The token will be backed 1:1 by the Real, and the reserves will be based on valid National Treasury bonds of Brazil. The president of Cainvest, Charles Aboulafia, assured that the reserves for the token would be audited to avoid any kind of mistrust.

The stable coin will be released to exchanges later this year with an opening capacity of R$10 million, with MBPay and Nvio, the payment institutions of Mercado Bitcoin and Bitso, respectively, under the supervision of Brazil’s Central Bank.

The exchanges hope there will be a total trading volume of 100 million BRL1 tokens at the end of its first year of issuance.