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BTG Pactual has announced the launch of its dollar-backed stablecoin dubbed BTG Dol. The bank now becomes the first banking institution in the Latin American region to launch a stablecoin.
BTG Pactual launches own stablecoin
BTG Pactual, the largest investment bank in Latin America has taken its web3 push a step further by rolling out a new dollar-backed stablecoin powered by its Mynt crypto trading infrastructure.
Per a press release by BTG Pactual the new BTG Dol stablecoin is pegged at 1:1 with the United States dollar, and the bank acts as the custodian.
BTG Pactual, the largest investment bank in Latin America, announces the launch of its first stablecoin through Mynt, the Bank's crypto platform. BTG Dol claims to be the world's first bank-issued USD stablecoin. https://t.co/sQBPrC6nMZ
— Wu Blockchain (@WuBlockchain) April 5, 2023
The bank says the new stablecoin is designed to offer its customers exposure to the U.S. dollar in a simple, secure, and efficient way.
Commenting on the launch of the BTG Dol stablecoin, Marcel Monteiro, head of operations at Mynt, noted that the Mynt crypto trading app has been a hugely successful product for the bank, supporting more than 22 cryptocurrencies.
“This shows that BTG Pactual trusts[innovative] technologies and will continue with its commitment to offering new innovative digital products and services, with the solidity and trust that are BTG’s hallmark.”
Marcel Monteiro, head of operations at Mynt.
Preserving value
While some advanced nations of the world like Russia, China, and others are now implementing measures to curb the USD dominance, the USD remains the world’s reserve currency and may maintain that status for another decade.
As such, creating a dollar-pegged stablecoin for Latin Americans is definitely a forward-thinking maneuver that will enable residents to preserve the value of their money even more than a central bank digital currency (CBDC).
Amid the rising inflation rate in the region, Brazil is not the only Latam nation turning to crypto and stablecoins for value preservation.
Argentina, which has been battling crippling hyperinflation over the years, recently passed a bill to launch a dollar-pegged stablecoin whose value will be secured by liquid assets in the region.
On April 4, reports emerged that Binance, the world’s largest crypto exchange has enabled the direct conversion of the Argentine pesos to crypto for its customers in the region, making life easier for residents.