Brazilian bank floats dollar-backed stablecoin to provide customers with investment options

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Investment banking giant BTG Pactual is expanding its digital currency services with the launch of a stablecoin pegged to the U.S. dollar—the BTG Dol.

The bank disclosed the move, saying that the stablecoin will give customers the option to “dollarize” their assets. It added that the new stablecoin offering would give users investment liquidity without reneging on security and efficiency.

BTG Pactual said the stablecoin is hosted on Mynt, the investment bank’s proprietary blockchain platform, which floated nearly a year ago. Andre Portilho, BTG Pactual’s head of digital assets, described the launch as the “first dollar-backed stablecoin” from a financial institution.

“We are innovating in using financial technology for our client’s benefits,” said Portilho. “When buying BTG Dol, investors have access to an easier, safer, and smarter way to invest in dollars.”

Marcel Monteiro, head of operations at Mynt, said pivoting to stablecoins hints toward the bank’s embrace of Web3 and belief in blockchain technology as the future of finance. Since Mynt launched in 2022, the platform has been leading the charge for the largest investment bank in Latin America to transition toward decentralized finance.

“We recently launched eight new assets, we already have 22 cryptocurrencies on the platform, and now we have our own stablecoin,” said Monteiro. “This shows that the Bank trusts technology and will continue with its commitment to offering new innovative digital products and services.”

BTG Pactual’s roots in digital assets run deep, with the bank launching one of the pioneering funds in Brazil after a lengthy back and forth with industry regulators. The bank struck a deal with U.S.-based Gemini for custody solutions relating to its virtual currency funds.

Brazilian banks set sights on digital currency offerings

There appears to be a trend of Brazilian banking institutions offering digital currency services to their customers despite the turbulence facing the digital asset markets. 

Banco do Brasil, the country’s oldest bank, announced that customers could use digital assets to pay taxes in partnership with Bifty, a blockchain service provider. Nubank, one of Brazil’s largest banks, revealed that its users can purchase BTC and Ethereum (ETH) on its platform, while the Brazilian central bank remains keen on launching its central bank digital currency (CBDC) using blockchain by 2024. 

Digital currency usage in Brazil has been rising since 2021, driven by galloping inflation and the need for lower fees for cross-border transactions.

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