BTG Pactual, has launched its first stablecoin. However, the move comes as an increasing number of countries ramp up efforts to distance themselves from the dollar.
The investment institution claims that it is the world’s first dollar-backed stablecoin from a bank.
BTG Dol will be backed by USD and issued on a 1:1 basis. Furthermore, it will be issued through the bank’s crypto platform, Mynt.
It stated that investors and users will be able to ‘dollarize’ part of their equity in a simple, efficient, and secure manner.
The stablecoin will be custodied by BTG Pactual. The bank will guarantee its backing, provide network security, and carry out due diligence. It will also be responsible for money laundering prevention and compliance processes.
Banks in America and the United Kingdom are shunning digital assets and firms associated with them.
Furthermore, the stablecoin launch comes at a time when dollar hegemony has come under threat as pressure on the U.S. economy mounts. There have been several moves to distance from the dollar over the past week or so.
China and Brazil agreed to carry out their massive trade in their currencies. This would cut out the greenback as an intermediary. China and Russia are already using the yuan for trade.
The stablecoin ecosystem is currently worth $133 billion.