BTG Pactual, the largest investment bank in Latin America, has announced its plans to launch a new stablecoin named BTG Dol. The stablecoin will be backed by the US dollar and maintain a 1:1 ratio, similar to USDT and USDC. The bank's new stablecoin will enable investors to "dollarize" their portfolios while ensuring a secure investment framework that includes due diligence, anti-money laundering, and compliance processes. The stablecoin will be launched on BTG Pactual's crypto asset platform, Mynt, introduced in 2022.
BTG Pactual entered the cryptocurrency market in 2019 with its security token, ReitBZ, backed by real estate assets in Brazil. Currently, the bank's platform supports 22 cryptocurrencies in addition to its new stablecoin. The bank's new stablecoin comes at a time when stablecoins have been experiencing significant turbulence, and regulators are scrutinizing the asset class to protect investors. Stablecoins are digital tokens designed to maintain a stable value and hedge against volatility, typically backed by the US dollar, US treasuries, and similar traditional assets.
However, even stablecoins have posed risks recently, leading global regulators to tighten their grip on the asset class. USDC, the second-largest stablecoin in the world by market capitalization, broke its 1:1 peg with the USD last month after its issuing company revealed that 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, causing a stir in the crypto industry. In response, global regulators, including the UK, have decided to bring stablecoins under the regulatory framework to improve investor protection.
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