BTG Pactual, a leading investment bank in Latin America, has announced the launch of the world’s first bank-issued dollar-backed stablecoin, BTG Dol. The stablecoin is now available for purchase starting from 100 Brazilian real, approximately $20, through the bank’s crypto platform, Mynt.
Unlike traditional cryptocurrencies like bitcoin and ether, stablecoins are designed to be less volatile and are pegged to traditional financial assets like fiat currencies. They allow investors and traders to keep their money in the digital asset ecosystem without being completely exposed to the price swings that are typical of most cryptocurrencies.
BTG Pactual’s stablecoin is backed by the U.S. dollar, providing clients with a safe and efficient way to “dollarize part of their equity in a simple, efficient and secure manner,” according to the bank’s statement.
The market capitalization of stablecoins has grown significantly in recent years, with data from CoinMarketCap showing a total market cap of around $133 billion and a 24-hour trading volume of nearly $39 billion. However, the largest stablecoins such as USDT and USDC have faced increasing regulatory scrutiny due to their private company issuers.
With the introduction of BTG Dol, BTG Pactual is paving the way for increased adoption of stablecoins in traditional finance. The bank’s decision to issue a bank-backed stablecoin may help to mitigate some of the regulatory concerns that have been raised around stablecoins issued by private companies.
BTG Pactual’s Mynt platform now supports 22 cryptocurrencies, providing clients with a comprehensive range of digital assets to choose from.
