The ever busy crypto space has a new stablecoin coming into the ecosystem from one of the major banking companies of America. The Brazilian investment bank BTG Practual is all set to launch a dollar pegged stablecoin, which is to be called BTG Dol. The stablecoin has been created via Practual’s crypto platform; Mynt.
In a Tuesday statement BTG Practual announced that its BTG Dol token, which is available for clients now, has been priced in U.S. dollars. The first stable coin from a bank in the world is confirmed to be run on the Polygon blockchain, which is the technology behind the infamous MATIC token.
The custody services of BTG Practual will be needed in order to get the access to the stable coin. The coin will have a one-to-one correlation with the US dollar as its backing. The said action is in line with a trend which has been previously used by major financial institutions all over the globe in order to provide crypto services to their respective clients.
However, the stablecoins are being looked at closely by regulators all around the globe, as a result of the Stablecoin falling and de pegging. For example, the Tera LUNA token de pegging in 2022 and the Circle’s USDC de pegging earlier this year, following the SVB banking scenario.
Read More: USDC Stablecoin Depegged after SVB Collapse
André Portilho, the Head of Digital Assets at BTG Pactual said, “When buying BTG Dol, investors have access to an easier, safer and smarter way to invest in dollars.” The announcement statement also stated that this BTG Dol stablecoin will make it possible for investors to have a “simple, efficient, and secure” way to put their equity into dollars. The process is set to make it easier for conventional finance and the digital economy to engage with each another.
The decision by BTG Pactual to develop their own stablecoin has been announced at a time when the global interest in crypto is continuing to increase in a massive scale. Stablecoins are a more stable option for investors who wish to invest in the crypto assets but are hesitant because of the asset’s high volatility; a perk which comes with the traditional crypto assets. That being a result, the usage of stablecoins has recently became increasingly popular. Experts are of the opinion that, it is because the more stable option that stablecoins offer.
Following the U.S. and Canada, Brazil is the the third largest economy in the Americas and the largest in Latin America. The BTG Practual’s BTG Dol is a component in the bank’s bigger ambition, which is an aim to integrate digital assets into its services. For the last few years, BTG Pactual has actually made significant efforts in order to broadening the scope of the crypto services it provides via the establishment of a crypto exchange as well as a digital asset investment fund.
Additional Read: Top stabelcoin List
Source: Decrypt, Blockchain News
