BTG Pactual, the investment bank Major in Latin America, just recently announced that it would launch its own stablecoin called BTG Dol.
The bank has issued an official statement (1) indicating that the stablecoin will operate on the Polygon network and is currently available to customers.
The blockchain network that the bank has decided to use has not exactly caught anyone off guard. This is because Polygon is interoperable with Ethereum and supports several well-known businesses, including Disney and Starbucks.
It is also important to note that MATIC, which is ranked as one of the biggest ten coins in terms of market value, uses Polygon as its underlying blockchain technology.
The BTG Dol token, like all other stablecoins, is tied to the value of the United States dollar. This is because it is essential for every stablecoin to have steady asset backing.
BTG Pactual Is Unconcerned About the Heightened Regulatory Investigation into Stablecoins
It is interesting to note that BTG Pactual made the decision to float its stablecoin at a time when rules are casting a shadow of uncertainty over stablecoins in general. Stablecoins have recently garnered the attention of global regulators, who previously paid them less attention.
In light of this, a number of them have issued warnings, while others are reevaluating the procedures they’ve had in place in the past.
The majority of their worries, however, center on the potential influence that stablecoins will have on the equilibrium of traditional markets.
However, it is commonly believed that stablecoins present additional dangers to the international monetary system. Recent events in which stablecoins have failed to maintain their value have also contributed to the majority of these concerns.
You may remember that the Terra LUNA market crashed in 2022, which caused a lot of mayhem in the digital asset market. For all of these reasons, lawmakers have been advocating for stablecoin issuers to be subject to the same regulations as banks.
Notwithstanding this, BTG Pactual is continuing to move forward with its decision to adopt a stablecoin. A stablecoin, according to a statement distributed by the Head of Digital Assets André Portilho, is the “easy, efficient, and secure” method for investors to convert their ownership into dollars.
According to the release, BTG Dol has been included on the crypto-asset platform known as Mynt which the bank operates. According to the announcement made on Tuesday, it is also possible to gain access to it through its investment system.
Featured Image from (1.1)