Brazil’s Central Bank Launches Phase 2 of CBDC Pilot
The Central Bank of Brazil, or BCB, has launched the second phase of its central bank digital currency, or CBDC, project dubbed DREX. Announced on Nov. 19, this stage introduces blockchain-driven trade finance applications – in partnership with technology leaders Chainlink, Banco Inter, Microsoft, and 7COMm.
Innovating Trade Finance with Blockchain
Phase 2 of DREX leverages blockchain and oracle technologies to transform trade finance processes. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will serve as a key element, enabling secure and interoperable transactions with a foreign central bank. This solution aims to demonstrate efficient cross-border settlement systems for tokenized assets.
Angela Walker, Global Head of Banking at Chainlink Labs, commented:
Chainlink CCIP is integral to securely enabling cross-border, cross-currency and cross-chain transactions, and is going to help in showcasing what tokenized assets can do at scale.”
Supply Chain Optimisation
Tokenization of eB/Ls is a key aspect that keeps the spotlight during this phase. By integrating supply chain data on-chain, the pilot will thus automate exporter payments against presented documents, giving way to smoother trade finance workflows. On the other hand, DREX also tends to optimize securities settlements involving Delivery versus Payment (DvP) and Payment versus Payment (PvP) procedures, an indispensable mechanism in trade internationally.
In particular, relevant for agricultural commodity trading, this initiative aims to ensure greater supply-chain transparency, security, and operational efficiency. Such improvements are targeted at exporters and importers in ways that ease the end-to-end process, minimize risk, and reduce costs.
Partnerships Powering Advancement
Pilot unites global technology leaders. Microsoft is responsible for cloud infrastructure, to ensure reliable and scalable operations, while 7COMm contributes technical capabilities to support the project. Chainlink has long been a leading contributor to tokenize assets and further expands its blockchain ecosystem with collaborations across industries, including Swift, Fidelity International, ANZ, and UBS.
Next Steps for DREX
Infrastructure development for Phase 2, according to the BCB, should start in the coming weeks, thereby setting up a full-scale pilot. This is one of the most important steps in adopting blockchain technology to modernize Brazil’s financial system. In integrating traditional finance with digital tools, the initiative seeks to further efficiency, innovate, and place Brazil at the forefront of CBDC adoption.
The DREX pilot underlines growing global interest in blockchain solutions, with central banks seeking secure, scalable, and interoperable financial systems.
