By
Chimamanda U. Martha
April 19th, 2024
Like many stablecoins, BTG Dol token is also pegged to the US dollar.
Latin America’s biggest investment bank, BTG Pactual, has just announced the launch of its own stablecoin – BTG Dol. According to an official statement from the bank, the stablecoin will run on the Polygon network and is already available to clients.
The bank’s choice of blockchain network does not exactly come as a surprise though. This is considering that Polygon is compatible with Ethereum and backs several major brands including Disney and Starbucks. It might also be worth mentioning that Polygon is the blockchain behind MATIC – one of the top ten largest cryptocurrencies in terms of market capitalization.
As required of every stablecoin to have a stable asset backing, the BTG Dol token is also pegged to the US dollar.
BTG Pactual Unbothered About Increased Regulatory Scrutiny of Stablecoins
Interestingly, the decision of BTG Pactual to float its stablecoin comes at a time when regulations are casting a shadow of doubt over stablecoins as a whole. Recently, global regulators are paying more attention to stablecoins. In line with this, several of them have issued warnings while others are reviewing their old policies.
But most of their concerns border on the impact that stablecoins may have on the stability of traditional markets. More so, it is widely believed that stablecoins also pose threats to the global financial system. Recent situations where stablecoins collapsed have also fueled most of these concerns. Recall, the Terra LUNA crash of 2022, which wreaked havoc in the digital asset market. For these reasons, lawmakers have been calling for stablecoin issuers to be regulated in the same way that banks are.
Nonetheless, BTG Pactual is pushing ahead with its stablecoin decision. In a statement shared by the Head of Digital Assets André Portilho, a stablecoin is the “simple, efficient, and secure” way for investors to put their equity into dollars. Per the announcement, BTG Dol is listed on the bank’s crypto-asset platform Mynt. It can also be accessed through its investment system, confirms the Tuesday announcement.