Brazil’s B3 exchange to launch bitcoin-related ‘event contracts’ targeting high-net-worth individuals.

The contracts are overseen by Brazil’s securities authority and tailored for professional investors possessing at least 10 million reais ($1.9 million) in assets.

(Vladislav Maslow/Unsplash)

Key details:

• Brazil’s primary stock exchange B3 will introduce six new event contracts on April 27, enabling investors to speculate on future developments, including fluctuations in bitcoin prices and currency rates.
• The contracts are governed by Brazil’s securities authority and aimed at professional investors with a minimum asset threshold of 10 million reais ($1.9 million).
• This launch is part of B3’s extensive initiative to modernize derivatives trading in Brazil, with the exchange also working on its own tokenization platform and stablecoin anticipated to debut this year.

Brazil’s primary stock exchange B3 is set to offer six new derivatives contracts starting April 27, which will permit investors to wager on the probabilities of future events, including the valuation of bitcoin and shifts in the dollar and Ibovespa index.

These instruments, known as Event Contracts, function within a framework akin to prediction markets such as Kalshi and Polymarket. Prices can reach up to 100 reals ($19), with each contract’s price symbolizing the market’s forecasted likelihood of a specific outcome.

B3’s contracts are regulated by Brazil’s securities authority (CVM) and are intended for professional investors, according to the exchange.

The six contracts encompass mini futures and spot prices related to the Ibovespa index, the U.S. dollar, and bitcoin. They are designed with predetermined payouts and clear risks from the start, similar to crypto price prediction markets on Kalshi and Polymarket.

Traders will not receive the underlying assets, as settlement will be conducted in cash. Currently, only investors holding more than 10 million reals ($1.9 million) in assets or possessing CVM certification are eligible to engage with the new offerings.

B3’s vice president of Products and Clients, Luiz Masagão, indicated that the launch is part of a larger strategy to modernize derivatives trading within Brazil.

The exchange already provides contracts linked to central bank decisions in various nations and has closely monitored the expansion of predictive platforms internationally, Masagão noted.

Late last year, the exchange announced its efforts in developing its own tokenization platform and stablecoin, both expected to launch this year.

B3’s introduction signifies the first federally regulated prediction market in Brazil, although it enters a progressively competitive landscape. Platforms such as Prévias and Palpitada have been functioning domestically in a regulatory gray area, while U.S.-based Kalshi has recently partnered with XP International, Brazil’s largest brokerage, to offer event contracts related to Brazilian economic outcomes.

This initiative also emerges amidst a global boom in prediction markets. Notional volume is approaching $160 billion, as reported by a Dune dashboard, while the number of unique users has surpassed 3 million.

Polymarket and Kalshi lead the global market, accounting for the majority of notional volume. The Intercontinental Exchange, which owns the New York Stock Exchange, has recently increased its investment in Polymarket, bringing its total commitment to nearly $2 billion.

However, the regulatory environment remains ambiguous on both sides of the equator. In Brazil, legal specialists assert that it is uncertain whether oversight of prediction markets should be managed by the CVM, the Central Bank, or the Ministry of Finance.