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Latin America’s Largest Investment Bank Launches a Dollar-Pegged Stablecoin on Polygon Network

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Brazil-based BTG Pactual, the biggest bank in Latin America, has officially launched its first stablecoin, the BTG Dol token. 

The unique stablecoin is pegged to the U.S. dollar and made available to clients to diversify their portfolios into USD. 

BTG Dol Token – A New Finance Paradigm Birthed Out of the U.S. Dollar Hegemony

BTG Pactual, a Brazilian investment bank, announced the launch of its first dollar-pegged stablecoin, the BTG Dol token, on Tuesday. The stablecoin was created by the bank’s cryptocurrency platform, Mynt. 

The investment bank confirmed that the new digital token would run on the versatile Polygon blockchain, the famous network behind the popular MATIC token, currently ranked as the largest cryptocurrency by market cap. 

The Polygon integration is perfect as it acts as a sidechain network to the world-revered Ethereum ecosystem and is popular amongst stellar companies like Disney and Starbucks. 

The BTG Dol token is designed to be a great option for investors looking to diversify their USD portfolios.

As previously stated, the BTG Dol token will have a one-to-one relationship with the U.S. dollar. The said action embodies the trend several financial institutions have used globally to provide cryptocurrency services to their regional residents. 

Andre Portilho, the Head of Digital Assets at BTG Pactual, stated via the press release that the bank aims to provide beneficiary innovative financial technology to regional customers, hence creating the BTG Dol token.

BTG Dol provides investors with an easier, more transparent, safer, and smarter option to invest in dollars, adding a new investment portfolio to the mix.

The Mynt cryptocurrency platform supports the buying, selling, and exchanging twenty-two digital assets, including giants like Bitcoin and Ethereum. 

Marcel Monteiro, the Head of Operations at Mynt, stressed that the launch of the Polygon-based stablecoin indicates the Latin American bank trusts technology and will endeavor to remain dedicated to providing a spate of new digital products and services.

However, the launch of the BTG Dol stablecoin may have come when most countries, notably the United States, are shunning digital assets and exchanges and corporations associated with them. 

Furthermore, the debut of the dollar-pegged token also comes when the dollar hegemony is under limelight scrutiny from giant nations as pressure on the U.S. economy increases due to the collapse of the Silver Gate and Silicon Valley banks, amongst other triggers. 

Countries have also mapped out several moves as they gradually transition from the U.S. dollar. 

China and Brazil have reportedly agreed to carry out all trade transactions in their fiat currencies. China and Russia are already using the Yuan fiat to facilitate trade. 

According to a Bloomberg report, there is also a brewing discussion between China and Malaysia to form an Asian Monetary Fund to distance both countries from the U.S. dollar and the International Monetary Fund (IMF.)

In late March, local reports erupted over the alleged discussion between Brazil, Russia, India, China, and South Africa to create a new currency called BRICS (formulated from the first letter of each country) to seamlessly process all transactions between regions. 

These developments will cause a massive cut out of the greenback dollar, now an intermediary in trade facilitation. 

The Outlook of the Stablecoin Ecosystem

As stated in the CoinGecko report, the Stablecoin ecosystem is worth $133 billion, with most tokens pegged to the U.S. dollar. 

Tether’s market share has surged recently at the expense of renowned stablecoins like Binance’s BUSD and Circle’s USDC. 

Tether now controls 60% of the stablecoin market, with over $80 billion USDT in circulation. 

However, the stablecoin ecosystem is under scrutiny by an array of global regulators, which has resulted in the depegging of dollar-backed assets. 

These include Tera Luna’s massive crash in 2022 and Circle’s USDC downtrend earlier this year, which was closely followed by the FTX and SVB scenarios. 

With BTG Dol stablecoin now in the picture, there are growing uncertainties over its long-term potential. 


About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.

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