Regulation

Major Brazilian investment bank BTG Pactual continues onboarding new cryptocurrency services with the launch of its own stablecoin backed by the U.S. dollar.

BTG Pactual is preparing to launch the BTG Dol, a new stablecoin pegged to the U.S. dollar on a 1:1 ratio, using the bank’s custody services. Announcing the news on April 4, BTG Pactual said that the stablecoin would enable holders to “dollarize” a part of their equity, and help customers interact between the traditional financial system and the new digital economy.

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

According to the announcement, the new BTG Dol stablecoin is based on Mynt, BTG Pactual’s proprietary crypto technology platform. Launched one year ago, Mynt allows users to invest in cryptocurrencies like Bitcoin (BTC) and Ether (ETH). Mynt’s head of operations, Marcel Monteiro, said:

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

As previously reported, Tyler and Cameron Winklevoss-founded crypto exchange Gemini partnered with BTG Pactual to provide custody for some of the bank’s digital asset-related funds. BTG Pactual’s Bitcoin 20 Multi-Market Investment Fund reportedly became one of the first Bitcoin funds launched in Brazil in 2021, with custody and other services provided by two Gemini subsidiaries, Gemini Custody and Gemini Fund Solutions.

Related: Russia talks up prospects of BRICS countries developing new currency

Brazilian banks have been adopting more cryptocurrency-friendly services for a while. In February, major Brazilian bank Banco do Brasil enabled customers to pay their taxes with cryptocurrencies like Bitcoin through a joint initiative with the local crypto firm Bitfy.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

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