BTG Pactual announced the launch of BTG Dol on April 4. According to the investing firm, it is the world’s first bank-backed stablecoin. The BTG Dol will be backed by USD and issued on a 1:1 basis, according to the statement. Furthermore, it will be distributed via the bank’s cryptocurrency platform, Mynt.
According to the company, investors and users would be able to ‘dollarize’ a portion of their equity in a simple, efficient, and secure manner. BTG Pactual will be the stablecoin’s custodian. The bank will guarantee its backing, secure the network, and perform due diligence. It will also be in charge of anti-money laundering and compliance procedures.
André Portilho, Head of Digital Assets at BTG Pactual, stated, “Once again, we are innovating in using financial technology to serve our clients.” Purchasing BTG Dol provides investors with an easier, safer, and smarter option to invest in dollars.”
Mynt now supports trading in 22 coins. The stablecoin launch demonstrates that the “bank trusts technology and will continue to offer new creative digital products and services,” according to Marcel Monteiro, Head of Operations at Mynt.
Banks in the United States and the United Kingdom, on the other hand, are avoiding digital assets and enterprises affiliated with them. Furthermore, the stablecoin introduction comes at a time when the dollar’s hegemony is under assault as the US economy struggles. Over the last week or so, there have been many movements away from the dollar.
China and Brazil agreed late last month to conduct their vast trade in their respective currencies. This would eliminate the need for the US dollar as a middleman. China and Russia are already trading in yuan. According to reports, China and Malaysia are also discussing the formation of an Asian Monetary Fund. This would aid in their distance.
A Russian state official promoted a new BRICS currency in late March. Brazil, Russia, India, China, and South Africa would be the primary users.
According to CoinGecko, the stablecoin ecosystem is presently valued $133 billion. Furthermore, the majority of that is in dollar-denominated assets. Tether has gained market share at the expense of Circle’s USDC and Binance’s BUSD. Tether now controls 60% of the market, with $80 billion in USDT in circulation.
