FameEX Hot Topics | Brazil's BTG Pactual Investment Bank to Release Stablecoin backed by the US Dollar

BTG Pactual, the largest investment bank in Latin America, announced its plans to launch a dollar-backed stablecoin named BTG Dol. The stablecoin is set to maintain a 1:1 ratio with the US dollar, like USDT and USDC. The bank said that BTG Dol would allow investors to "dollarize" their portfolios while providing "the whole security framework for the asset, such as due diligence, anti-money laundering, and compliance processes." It will be launched on Mynt, BTG Pactual's crypto asset platform that was introduced in 2022.

BTG Pactual entered the cryptocurrency market in 2019 with its security token, ReitBZ, that was backed by real estate assets in Brazil. Currently, the bank's platform supports 22 cryptocurrencies and its new stablecoin. The investment bank's foray into stablecoins comes at a time when the asset class is experiencing significant turbulence. Stablecoins are digital tokens that are typically backed by the US dollar, US treasuries, and similar traditional assets designed to maintain a stable value and hedge against volatility.

However, even stablecoins have posed certain risks recently, leading global regulators to crackdown on the asset class. USDC, the second-biggest stablecoin in the world by market capitalizfation, broke its 1:1 peg with the USD last month after its issuing company revealed it had 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 its price collapsed within hours, sending shockwaves throughout the crypto industry. As a result, global regulators, including the UK, have decided to bring stablecoins under the regulatory framework to improve investor protection.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.