BTG Pactual, one of the largest investment banks in Latin America, has issued a USD-pegged stablecoin through its cryptocurrency platform Mynt.
BTG Pactual said in an April 4 announcement that the stablecoin “BTG Dol” is the world’s first dollar-pegged stablecoin issued by a bank.
The São Paulo, Brazil-based bank says it will allow customers to “dollarize a portion of their shares in a simple, efficient and secure way.”
BTG Dol can be purchased from 100 reais (about $20) on Mynt, the bank’s cryptocurrency app that will be rolled out in 2021. Mynt will be released in 2021 and currently supports 22 cryptocurrencies.
Unlike cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), stablecoins are pegged to traditional financial assets such as fiat currencies (usually US dollars). This allows investors and traders to keep their money in the crypto ecosystem without being exposed to the volatility inherent in most cryptocurrencies.
According to data from CoinMarketCap, stablecoins have a market capitalization of about $133 billion (about ¥17.5 trillion) and a 24-hour trading volume of about $39 billion (about ¥5.13 trillion).
The largest stablecoins, such as Tether (USDT) and USDCoin (USDC), are issued by private companies and are therefore subject to regulatory scrutiny, especially since the collapse of algorithmic stablecoin TerraUSD (UST) last year. My eyes are getting hard.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Brazilian Investment Bank BTG Pactual Brings Out Dollar-Backed Stablecoin
The post Brazilian investment bank issues its own dollar-pegged stablecoin | coindesk JAPAN | Coindesk Japan appeared first on Our Bitcoin News.