Brazil's premier stock exchange, B3, is set to launch a new class of regulated financial instruments tied to the price of Bitcoin. Starting April 27, the exchange will introduce six 'Event Contracts,' which function similarly to prediction markets, allowing investors to speculate on future outcomes. One of these contracts will be directly linked to the price of Bitcoin, with others tied to the US dollar and the Ibovespa stock index.
The contracts are priced up to 100 Brazilian reais (approximately $19) and reflect the market's estimated probability of a specific outcome occurring. Crucially, these instruments are exclusively available to professional investors with assets exceeding 10 million reais (about $1.9 million) or those holding certification from Brazil's securities regulator, the Comissão de Valores Mobiliários (CVM). Settlement will be in cash, with no physical delivery of the underlying assets.
Luiz Masagão, Executive Vice President of Products and Clients at B3, stated the launch aims to modernize Brazil's derivatives market. B3, which already offers contracts linked to central bank decisions, has been monitoring the growth of international prediction platforms like Kalshi and Polymarket. With this move, B3 becomes the first institution to operate such a market with full federal regulation and approval in Brazil.
The exchange is also advancing its broader digital asset strategy, with plans to launch its own tokenization platform and a stablecoin before the end of the year. This development occurs amidst a global surge in prediction markets, where notional volume is approaching $160 billion and unique users have surpassed 3 million, according to data from Dune.
