London-based start-up Brava has launched to help ‘unlock’ the stablecoin market to wealth managers, high net worth individuals (HNWI), and institutional investors.

Its AI-driven stablecoin management system seeks to enable wealth managers to navigate stablecoin protocols to generate best returns.

The start-up has developed a proprietary system to help wealth managers and HNWIs in managing their stablecoin holdings efficiently.

Stablecoins are a type of cryptocurrency that have their value pegged to another asset, such as gold or another currency.

Brava aims to improve portfolio performance by automatically identifying the most competitive and suitable yields.

It has raised a seven-figure sum from a combination of European family offices and Silicon Valley investors, with an initial focus on supporting yield earnings on the three major stablecoins: USDC, USDT, and DAI.

USDC, issued by Circle, and USDT, issued by Tether, are both pegged to the US dollar, while DAI is a decentralised collateral-backed stablecoin that attempts to match the US dollar.

Brava stated that it plans to expand into stablecoins tied to other currencies in other geographies this year, including newly pegged stablecoins from firms such as PayPal and Deutsche Bank.

Its founder and CEO, Graham Cooke, launched and sold retail e-commerce provider Qubit for $50m to Coveo Solutions in 2021, and is currently a non-executive director at ITV PLC and RWS Group.

Brava is self-custodian and offers coverage protection of up to $1bn through crypto coverage provider Nexus Mutual.

It will initially access 10 investment pools, including AAVE, Fluid, Compound, Morpho and DAI Savings Rate.

Commenting on the launch, Cooke stated: “The stablecoin market is growing rapidly and is set for further growth, firmly establishing it on the agenda of institutional investors and wealth managers.

“Given the links to US Treasury bonds, they are primarily backed by the Federal Reserve. The potential uses of stablecoins go beyond crypto, as demonstrated by the increasing use of stablecoins by major firms like Visa and Stripe.

“Managing holdings and maximising yields can still be challenging and very complex for institutional investors, which creates the need for solutions such as Brava to open up the sector fully.”

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