Brazil stablecoin trading soars as firms hedge Lula election shock

Brazilian companies have turned heavily to dollar-backed stablecoins following the October 25 presidential runoff, with corporate accounts generating 78% of Mercado Bitcoin’s Sunday trading as Luiz Inácio Lula da Silva defeated Flávio Bolsonaro. Summary Corporate accounts generated 78% of Mercado Bitcoin’s election-day trading volume as companies sought currency protection. USDT trading surged nearly 800%, while Bitcoin volume rose 865% on Mercado Bitcoin. Brazil’s Ibovespa plunged 14%, while the dollar gained over 8% against the real after Lula’s victory. Across monitored exchanges, USDT and USDC trading against the real rose 150% and 318%, respectively. Kalshi assigned Bolsonaro an 84% chance of winning before Lula secured the presidential runoff. According to figures provided by Mercado Bitcoin, USDT turnover rose nearly 800% from the previous Sunday, while Bitcoin trading climbed 865%. Companies reportedly used the exchange to manage exposure to the Brazilian real while conventional financial markets were closed, ahead of a steep selloff when trading resumed Monday. The election returned Lula to office after a closely contested runoff in which financial markets had anticipated ...