The CBDC Watch · Explainer

DREX: status, how it works & market impact

Pilot Brazil Issuer: Banco Central do Brasil Last reviewed: relaunch edition, July 2026

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What it is

DREX is Brazil's CBDC initiative, developed by Banco Central do Brasil around a platform for tokenised assets and settlement. It has focused heavily on a wholesale and infrastructure layer, with pilots involving financial institutions.

How it works

DREX is built to enable tokenised deposits and asset settlement on a distributed-ledger-based platform, with the central bank issuing the wholesale layer and banks providing services to the public.

How it differs from crypto and stablecoins

DREX is public digital money and settlement infrastructure, distinct from crypto-assets. Brazil already runs a popular instant-payment system, which shapes DREX's role.

What it means for the market

Brazil's tokenisation-first approach is a notable model for how CBDCs might underpin broader digital-asset markets.

Primary sources

Banco Central do Brasil

Frequently asked questions

What makes DREX distinctive?

Its emphasis on tokenised assets and settlement infrastructure, rather than a simple retail wallet, in pilot as of this review.