Brazilian investment bank BTG Pactual has announced its first stablecoin, called BTG Dol, pegged 1:1 to the commercial U.S. dollar exchange rate. The project was developed by Mynt, a crypto-asset trading platform launched by the bank in August last year.
In addition to BTG Dol, 22 cryptocurrencies and tokens (digital representations of assets) are traded on Mynt.
According to BTG Pactual, this is the first stablecoin issued by a financial institution aimed at consumers and investors of all backgrounds. A stablecoin is a digital currency tied to an asset, such as an official currency, gold, or another commodity — its stability depends on the asset’s behavior and the custodian institution’s success in reducing volatility.
In a video to clients, BTG said BTG Dol allows investors to “dollarize” part of their assets in a simpler way than buying currency or investing in exchange funds. BTG Dol has a minimum investment of BRL 100 (USD 19.72).
The “Digital Real’ project, Brazil’s central bank digital currency (CBDC), offers the possibility for financial institutions to issue digital assets tied to deposits. The Central Bank will guarantee these tokens, and each will be worth the same as a Digital Real. Analysts believe that more banks will test the waters through projects such as BTG Dol, before more CBDCs come to life.
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