BTG Pactual Launches First Stablecoin To Dollarize Investors’ Stock Efficient

Key Points:

• BTG Pactual has launched its first stablecoin through Mynt, the bank’s cryptocurrency platform.
• BTG Dol is designed as a stablecoin, which is a form of cryptocurrency backed by a stable asset, in this instance, the US dollar.
• The stablecoin allows its holders to ‘dollarize’ a portion of their stock in a straightforward, efficient, and safe way.

BTG Pactual of Brazil, the largest investment bank in Latin America, said on Tuesday that it would issue a stablecoin priced in US dollars at a one-to-one parity in order to position itself in the digital assets market.

With the creation of its own stablecoin backed by the US dollar, major Brazilian investment firm BTG Pactual continues to integrate new cryptocurrency services.

BTG Pactual announced the announcement on April 4, saying that BTG Dol will allow investors to “dollarize” a portion of their stock in an easy, efficient, and secure way.

André Portilho, Head of Digital Assets at BTG Pactual, stated:

“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.”

The new BTG Dol stablecoin, according to the release, is built on Mynt, BTG Pactual’s unique crypto technology platform. BTG Pactual holds the stablecoin and guarantees and oversees its backing, as well as providing the asset’s whole security framework, such as due diligence, money laundering prevention, and compliance procedures.

This makes a lot of sense from the standpoint of investment banking. Stablecoins provide no return to token holders, but if the bank invests the underlying assets in short-term US Treasury bonds, the yield is now 4.64%, which benefits the bank.

BTG Dol may now be purchased via the BTG Pactual investing platform as well as the Mynt app. It is possible to begin investing with as little as R$100.

Gemini, the crypto exchange established by Tyler and Cameron Winklevoss, has collaborated with BTG Pactual to offer custody for certain of the bank’s digital asset-related assets.

Nevertheless, Brazil’s central bank has said that it does not intend to launch a retail central bank digital currency (CBDC). It just began its digital real pilot, which involves a wholesale CBDC with corporate and consumer interfaces through bank deposit tokens. While retail payments are fully met by the Pix mobile payment application, the goal is to create a settlement asset for tokenized securities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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