Paradigm makes its first investment in Brazil with a US$13.5 million contribution to the Crown stablecoin

Source: PortaldoBitcoin Original Title: Paradigm invests US$ 13.5 million in Crown in its 1st investment in Brazil Original Link: Paradigm, a venture capital firm in the cryptocurrency sector, made its first investment in Brazil, injecting US$ 13.5 million into the stablecoin startup Crown.

“We are pleased to announce that Crown has raised US$ 13.5 million in a Series A funding round led by Paradigm, valuing the company at US$ 90 million. This is Paradigm’s first investment in Brazil,” said Crown.

Crown was announced in November with the launch of BRLV, a stablecoin pegged to the real (BRL) and 100% backed by Brazilian government bonds. The US$ 13.5 million contribution refers to the startup’s Series A funding round, with the company now valued at US$ 90 million.

“The Paradigm team has been at the forefront of crypto innovation for many years, and their entry into Brazil reflects the work of all the developers here so far—and the huge opportunities that lie ahead for our sector,” the company highlights.

Paradigm’s investment in Crown was influenced by the founders’ experience in fintechs and the rapid traction gained by the BRLV stablecoin.

Ricardo de Arruda, partner at Paradigm, stated that the strong network effects of leading stablecoins reinforce Crown’s potential, which he says is the largest emerging market stablecoin pegged to a local currency.

The startup was founded by John Delaney, a lawyer based in Brazil, and Vinicius Correa, formerly of Nubank. Crown’s investors include Framework Ventures, Valor Capital Group, Coinbase Ventures, Norte Ventures, and Paxos.

Brazilian stablecoin

Delaney explained that Crown was born from the realization that Brazil had space for a stablecoin that could solve two points: the high base interest rate—currently around 15%—and the need for institutional security to attract large companies.

Crown reported having over R$ 360 million in subscriptions and emphasized that BRLV is available only to institutional clients, who capture the yield from the bonds. Demand is growing especially among investors interested in accessing the Brazilian interest rate via “carry trade.”

The company, which sees great potential in the country—the fifth largest cryptocurrency market in the world—projects reaching R$ 1 trillion in BRLV in circulation over the next ten years.