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By Regulated BRL Settlement for FX and Institutional Payments on Stellar
This submission extends PagFinance’s existing settlement infrastructure by integrating BRLP into the Stellar network as a regulated, protocol-enforced BRL settlement layer.
BRLP is not being introduced as a standalone token issuance project. It is the on-chain representation of a fiat-backed settlement system that is already live, where the core value lies in the payment and settlement rails rather than in the token itself.
What this work adds is the elevation of compliance enforcement from the application layer to the protocol layer. On Stellar, controls such as counterpart authorization, freeze, and clawback become native network operations, making them visible, auditable, and aligned with regulatory requirements. This enables PagFinance to support institutional settlement use cases, where only verified counterparts can hold and transact BRLP under issuer-controlled conditions.
At the same time, the integration introduces standardized cross-border settlement capabilities, allowing BRLP to function as the BRL leg in FX transactions with near-instant finality. By leveraging Stellar’s anchor protocols, the system connects blockchain-based settlement directly to fiat rails like PIX and banking infrastructure, without requiring custom middleware.
Additionally, the implementation of conditional settlement through Soroban enables delivery-versus-payment flows, ensuring that transactions between institutional parties only complete when all obligations are verified, with enforcement handled at the network level.
In practice, this submission turns BRLP on Stellar into regulated payment and settlement infrastructure, where the token exists as an on-chain mechanism to execute, reconcile, and audit real-world fiat transactions with verifiable compliance state for regulators and institutional counterparts.
Further details: https://docs.google.com/document/d/16Xj2y8s6LdAX-5vopxcHfihovgx0-6AH/edit
BRLP Website: https://www.brlp.money/
PagFinance Website: https://www.pag.finance/
$96.0K
From January 2025 through February 2026, PagFinance processed $4.0M across 25,000 successful transactions, with 4000 unique wallets onboarded and a refund rate under 6%. Monthly volume grew from under USD 90k in January 2025 to over USD 300k by September, closing FY2025 at approximately USD 118k in gross revenue, with a 11% MoM growth rate. We have operated completely bootstrapped and we’re cash-flow positive, with a net profit margin of 11.3%.
Dune Dashboard (out of 5 networks, currently only Solana available): https://dune.com/pagcrypto/payments
Budget: $40,000
This phase adds Stellar as a supported chain in the TSL and stands up the anchor infrastructure. We already have the watcher pattern, the deposit flow, and the mint/burn logic in production. The work is adapting them to Stellar's asset model and SEP protocols.
Scope:
Implement Stellar watcher in the TSL, following the same pattern used for Solana and XRPL. The watcher detects deposits, derives deposit_id with chain_id=stellar, and feeds the existing deposit pipeline.
Issue BRLP as a native Stellar asset on testnet with separate issuer and distributor accounts
Configure authorization required, authorization revocable, and clawback enabled flags
Adapt the TSL deposit flow to integrate SEP-24: incoming deposits on Stellar go through the standard interactive deposit/withdrawal protocol, mapping to the existing PENDING > APPROVED > SETTLED state machine
Implement SEP-10 authentication for counterpart identity verification
Extend PayMonitor.io to display Stellar-side supply, mint/burn events, and reserve attestations alongside existing chain data
Document asset configuration, anchor setup, watcher integration, and operational procedures
Verification: Testnet asset publicly visible. Stellar watcher processing deposits through the existing TSL pipeline. Mint/burn flows reproducible via documented API calls. SEP-10 auth testable. PayMonitor showing Stellar data. Repository published with full config and spec.
Budget: $26,000
This phase moves the compliance controls from application-level enforcement to protocol-level enforcement on Stellar. It also introduces conditional settlement via Soroban for cases that require escrow logic beyond what native Stellar operations support.
Compliance layer:
Map the TSL's early credit + freeze pattern to Stellar's trustline authorization. When a deposit is detected and BRLP is minted in PENDING state, the counterpart's trustline remains unauthorized. When compliance checks pass and the deposit moves to APPROVED, the issuer approves the trustline. The freeze/release cycle that today is internal to the TSL becomes visible and verifiable on the Stellar ledger.
Wire mint logic to bank confirmation webhooks for institutional deposits, following the same PENDING > APPROVED > REJECTED flow already in production
Implement full on-chain/off-chain audit trail: every mint and burn on Stellar maps to a specific deposit_id and fiat event in the TSL, traceable end to end
Add KYB verification as a prerequisite for trustline approval. Only verified institutional counterparts receive issuer authorization to hold BRLP on Stellar.
Write operational runbook covering both existing payment liquidation flows and the new Stellar institutional settlement flows
Soroban conditional settlement:
Why Soroban: native Stellar operations (path payments, multi-op transactions) handle atomic swaps and simple transfers. But DvP (Delivery vs. Payment) settlement requires conditionality: BRLP locked in escrow, released only when the counterpart's obligation is independently confirmed by an external verification source. The TSL's PaymentOrder flow (RESERVED > PROCESSING > SETTLED) needs an on-chain equivalent for institutional counterparts who want settlement finality enforced by the network, not by PagFinance's internal state machine.
Deploy Soroban contract implementing escrow-based DvP: BRLP locked until counterpart confirmation event
Document the DvP interface for institutional integrators
Verification: Replayable settlement scenarios showing the full TSL lifecycle on Stellar. Published compliance docs and runbook. Trustline authorization flow demonstrably gated by KYB status. Any reviewer can pick a BRLP movement on Stellar and trace it through the TSL to its fiat origin. Soroban contract on testnet with documented DvP flows.
Budget: $30,000
This phase implements cross-border settlement via SEP-31 and runs it with real institutional counterparts. Scope:
Wire BRLP as the BRL leg in FX settlement flows (BRL/USD, BRL/USDC)
Map the TSL PaymentOrder flow to SEP-31 cross-border settlement: the PaymentOrder's RESERVED > PROCESSING > SETTLED transitions drive the SEP-31 lifecycle on Stellar
Build institutional payment paths between authorized counterparts using Stellar's path payment operations
Run a controlled pilot with 2–3 institutional counterparts. Target profiles: Brazilian crypto exchange treasury desk, mid-market FX brokerage, or payments company with cross-border BRL flows.
Target: on-chain settlement leg under 5 seconds
Verification: Recorded end-to-end settlement flows with real counterparts. Latency metrics published. Pilot results documented with participant feedback on integration quality, settlement reliability, and operational readiness.
Andre Straube - Founder & CEO
Technology specialist with over 20 years of experience. Scaled Mottu's delivery app (Series B) from 1 to 60,000 users as Tech Lead and Partner. Founded, scaled, and successfully exited Dooh Mídia, a digital advertising company, over a five-year period. Now building PagFinance.
https://www.linkedin.com/in/andre-straube/
Matheus Almeida - Co-founder & COO
6+ years of experience across financial governance and regulatory compliance + growth and strategic partnerships within the Web3 ecosystem. Currently scaling PagFinance’s operations and expanding its crypto-to-fiat payment infrastructure in Brazil.
https://www.linkedin.com/in/matheus-almeida-313b7a150/?locale=en-US
Yuri Gubert - Ecosystem & BD
3+ years in Brazil’s Web3 ecosystem, driving BD and cross-chain adoption on Solana, Vega Crypto, Li.Fi and Wormhole Brasil.
linkedin.com/in/yuri-gubert/?skipRedirect=true
Ana Westfal - Community Manager
Web3 strategist with 10+ years in finance and community building, driving adoption through ecosystem growth and real-world use cases. LATAM Growth at Uniswap.
https://www.linkedin.com/in/ap-westfal/?skipRedirect=true
Antonio Mourão
Software Engineer, 10+ years of experience, focused on backend development, with strong expertise in Java, Spring (Boot/Cloud), and enterprise tooling. Experienced in relational and NoSQL databases, messaging systems (RabbitMQ, Kafka), APIs, microservices, and Git-based version control.
Andre Straube
No other submissions.