A Brazilian Major Bank Launches Its Own Stablecoin

The Polygon (MATIC) ecosystem now includes a stablecoin for which the major Brazilian bank BTG Pactual is responsible. It is intended to make it easier for customers to settle their investments in U.S. dollars.

An initiative of a special kind is coming from Brazil in the stablecoin sector. With BTG Pactual Bank, which has its headquarters in Sao Paulo, a Brazilian financial institution is taking direct responsibility for a new stablecoin. According to the press release, this will be known as BTG Dol, is firmly pegged 1:1 to the U.S. dollar, and is organized on the Polygon (MATIC) blockchain.

Read more about the new stablecoin launched by BTG Pactual and find the most important business news of the day with our companion app Born2Invest.

BTG Pactual is the largest investment bank in Latin America, according to the company’s self-report, and as a universal bank, it is one of the largest financial institutions in Brazil

The stablecoin BTG Dol will initially be distributed through the bank’s own crypto app Mynt

The goal is to enable customers to settle their investments in U.S. dollars across various asset classes as well. The background is likely to be that national currencies in South America often suffer from high inflation and more trust is placed in the US dollar. BTG Pactual Bank assures that its stablecoin is fully backed by reserves in U.S. dollars and that it also pays attention to compliance with regulations such as anti-money laundering when using BTG Dol.

Data from DeFiLlama shows: Polygon’s ecosystem currently integrates just over 30 stablecoins, 16 of which have a market cap of more than $1 million for use there. With Tether (USDT), the best-known international stablecoin also occupies almost 50 percent of the market share at Polygon. BTG Dol is unlikely to seek competition here, instead focusing on its own strengths. Since the stablecoin is integrated into the bank’s own system, savings plans or loans can be arranged in BTG Dol, for example. In addition, there is speculation as to whether the bank will not also offer savings interest for BTG Dol.

Conclusion: Stablecoin BTG Dol with a big bank behind it

Stablecoins are increasingly coming into the focus of regulators in the U.S. and Europe, also because the largest three representatives together stand for about 120 billion capital. BTG Pactual believes its stablecoin will be spared disproportionate regulation because of the bank’s reputation.

The choice of Polygon as the network for BTG Dol was obvious, as very low transaction fees prevail there, while high speed and stability are guaranteed. Only time will tell if the concept of attracting bank customers towards crypto for their conservative investments in US dollars will work out.

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(Featured image by Lteixeira via Pixabay)

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