Backpack launches tokenized Brazil ETF amid post-election market rally

Backpack launches tokenized Brazil ETF amid post-election market rally

The Solana-based token is redeemable 1:1 for shares of the iShares MSCI Brazil ETF, giving crypto-native investors access as Brazilian markets rally.

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by Estefano Gomez

Backpack Securities has launched a tokenized version of the iShares MSCI Brazil ETF on Solana through Sunrise, bringing one of the main vehicles for trading Brazilian equities onto crypto rails as investors react sharply to Brazilā€™s first-round election result.

The tokenized EWZ is redeemable 1:1 for traditional shares of the ETF through Backpack Securities. The launch comes as EWZ jumped roughly 13% Monday following a surprise result in Brazilā€™s first-round presidential vote.

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Sen. FlƔvio Bolsonaro finished first with about 47% of the vote, ahead of President Luiz InƔcio Lula da Silva at roughly 45%, setting up an Oct. 25 runoff.

Brazilian markets rallied sharply on the result, with the Bovespa, Brazilā€™s benchmark stock index, gaining more than 8% and the real strengthening more than 4% as investors increased bets on a more market-friendly fiscal agenda.

The timing shows one advantage of tokenized assets: when events like elections or earnings suddenly increase demand for a specific market, investors can get exposure through crypto platforms without relying only on traditional brokerage hours.

That is the gap Backpack is trying to address. The company launched Backpack Securities earlier this year with Sunrise as its tokenization partner, allowing traditional securities to be converted into Solana-based tokens and later redeemed back into corresponding security entitlements.

Tokenized equities and ETFs have been growing quickly as more traditional assets move onto blockchain rails. DefiLlama reported in August that the market capitalization of tokenized equities had grown ninefold over the previous year to more than $3.7 billion. Its latest dashboard tracks about $2.7 billion in onchain public equities, with roughly $196 million actively deployed across DeFi.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
ECOSYSTEM
Backpack launches tokenized Brazil ETF amid post-election market rally
Backpack launches tokenized Brazil ETF amid post-election market rally

The Solana-based token is redeemable 1:1 for shares of the iShares MSCI Brazil ETF, giving crypto-native investors access as Brazilian markets rally.

by Estefano Gomez

Share

Add us on Google

Backpack Securities has launched a tokenized version of the iShares MSCI Brazil ETF on Solana through Sunrise, bringing one of the main vehicles for trading Brazilian equities onto crypto rails as investors react sharply to Brazilā€™s first-round election result.

The tokenized EWZ is redeemable 1:1 for traditional shares of the ETF through Backpack Securities. The launch comes as EWZ jumped roughly 13% Monday following a surprise result in Brazilā€™s first-round presidential vote.

Advertisement

Sen. FlƔvio Bolsonaro finished first with about 47% of the vote, ahead of President Luiz InƔcio Lula da Silva at roughly 45%, setting up an Oct. 25 runoff.

Brazilian markets rallied sharply on the result, with the Bovespa, Brazilā€™s benchmark stock index, gaining more than 8% and the real strengthening more than 4% as investors increased bets on a more market-friendly fiscal agenda.

The timing shows one advantage of tokenized assets: when events like elections or earnings suddenly increase demand for a specific market, investors can get exposure through crypto platforms without relying only on traditional brokerage hours.

That is the gap Backpack is trying to address. The company launched Backpack Securities earlier this year with Sunrise as its tokenization partner, allowing traditional securities to be converted into Solana-based tokens and later redeemed back into corresponding security entitlements.

Tokenized equities and ETFs have been growing quickly as more traditional assets move onto blockchain rails. DefiLlama reported in August that the market capitalization of tokenized equities had grown ninefold over the previous year to more than $3.7 billion. Its latest dashboard tracks about $2.7 billion in onchain public equities, with roughly $196 million actively deployed across DeFi.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.