Brazil-Based Investment Bank BTG Pactual to Launch Dollar-Backed Stablecoin

After launching its own security token and crypto asset platform, Brazil-based investment giant BTG Pactual is also launching its stablecoin, BTG Dol. The stablecoin will be backed by the US dollar and available on the bank’s crypto platform Mynt.

BTG Pactual Dives Deeper Into Crypto

BTG Pactual, the biggest investment bank in Latin America, said it would roll out a dollar-backed stablecoin, marking the bank’s latest foray into digital assets. The stablecoin, BTG Dol, will maintain a 1:1 parity to the US dollar, like USDT and $USDC.

BTG Dol will be launched on Mynt, BTG Pactual’s crypto asset platform launched in 2022. The bank said the new stablecoin would allow investors to “dollarize” their portfolios while offering “the whole security framework for the asset, such as due diligence, anti-money laundering, and compliance processes.”

“Once again, we are innovating in using financial technology in our clients’ benefit. When buying BTG Dol, investors have access to an easier, safer and smarter way to invest in dollars.”

– said André Portilho, Head of Digital Assets at BTG Pactual

BTG Pactual entered the cryptocurrency space in 2019 when it launched its security token, ReitBZ, backed by real estate assets in Brazil. Today, the bank’s platform supports 22 cryptocurrencies and its new stablecoin.

Stablecoins Still Targeted by Regulators

BTG Pactual’s dive into stablecoins comes amid a tumultuous period for the asset class. With a combined market value of around $136 billion, stablecoins are digital tokens usually backed by the US dollar, US treasuries, and similar traditional assets designed to maintain a steady value and hedge against volatility.

But even stablecoins have posed certain risks recently, forcing global regulators to crack down on the asset class. Last month, $USDC, the second-biggest stablecoin in the world by market cap, broke its 1:1 peg with the USD after its issuing company revealed it has almost 8% of its reserves at the collapsed lender Silicon Valley Bank (SVB).

Last year, the algorithmic stablecoin TerraUSD (UST) broke its peg with the US dollar and saw its price collapse in hours, sending shockwaves through the crypto industry. As a result, global regulators, including the UK, decided to bring stablecoins under the regulatory framework to improve investor protection.

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