The largest bank in Brazil, Itaú Unibanco, is considering launching its own stablecoin, making it the latest major traditional financial institution that announces similar plans.
The bank’s decision will depend on how the regulatory framework of Brazil develops and how similar initiatives of large international institutions perform, local media reported.
Global trend
The move comes in the midst of a wave of recent announcements of Tradfi institutions with regard to plans to launch or develop Stablecoins.
In Japan, Sumitomo Mitsui Financial Group (SMFG) has announced plans to build infrastructure for the issue and payments of Stabilein.
The initiative will explore with the help of stablecoins for settlements that are linked to tokenized bonds and real estate activa. A pilot program is expected later this year, while the entire launch is planned for next year.
In the US, Brian Moynihan, CEO of the Bank of America, recently confirmed that the bank is willing to launch a dollar-supported Stablecoin if the congress determines a clear legal framework.
The American lender places the announcement in a growing number of systemically important banks that plan access to the Stablecoin sector.
These developments came after the formal rejection of the US President Donald Trump of a digital currency of the Central Bank (CBDC) and notes for Stablecoins, which have moved the attention of digital money issued by the State and to alternatives in the private sector.
Middle
For traditional banks, Stablecoins offer a Middenweg, in which the efficiency and programmability of blockchain technology is combined with the fame and confidence of Fiat’s currencies.
Itaú, which has previously tested digital guardianship and tokenization services, has not made a final decision. However, its leadership closely keeps the success of peers in the US and Asia, especially if they navigate in evolving regulations and technical implementation.
The Central Bank of Brazil still works with legislators to clarify how and when banks can spend or manage Stablecoins, leaving room for strategic hesitation.
As the momentum builds worldwide, a successful Stablecoin launch would install the institution by a growing competition of global banks that want to modernize the payment infrastructure by Tokenized, Fiat-Pegged instruments.
While Brazil continues to shape its regulatory attitude, Itaú’s willingness indicates that Latin -America is preparing to play a serious role in the next phase of digital financing.
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