Brazil’s Central Bank Pilots Blockchain-Powered Trade Finance Solution with Tech Giants

Brazil’s Central Bank has launched the second phase of its digital currency pilot, DREX, by collaborating with Chainlink, Microsoft, Banco Inter, and 7COMm to revolutionize cross-border trade finance through blockchain technology.

The innovative project aims to streamline agricultural commodity transactions by leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable secure, efficient cross-border and cross-currency settlements. By tokenizing electronic bills of lading and using blockchain mechanisms, the initiative seeks to enhance transparency and automate supply chain payments.

Banco Inter will lead the implementation, with Microsoft providing cloud infrastructure and 7COMm offering technical expertise. The pilot demonstrates a strategic approach to integrating central bank digital currencies (CBDCs) with advanced blockchain technologies.

“We see this as a transformative opportunity to expand market reach and improve the health of the Brazilian market,” said Bruno Grossi, Head of Emerging Technologies at Banco Inter.

The project addresses critical challenges in international trade by enabling Delivery versus Payment (DvP) and Payment versus Payment (PvP) mechanisms, potentially reducing friction in global financial transactions.

Infrastructure development is set to commence in the coming weeks, with the pilot extending through 2025. This initiative represents a significant step towards modernizing trade finance through technological innovation.

Chainlink’s involvement underscores the growing importance of blockchain interoperability, with the company having already facilitated over $16 trillion in transaction value across the blockchain ecosystem.