BTG Pactual, Latin America's Largest Investment Bank, Launches Stablecoin BTG Dol

BTG Pactual, Latin America's largest investment bank, will launch a stablecoin valued in US dollars with a value of 1:1 (photo: dock.btgpactual.com)

JAKARTA - BTG Pactual, the largest investment bank in Latin America, will launch a stablecoin priced in US dollars at 1:1, in an effort to position itself in the digital asset market. The stablecoin, called BTG Dol, will be available on Mynt, the bank's crypto asset platform, and through BTG Pactual's own investment system.

Stablecoins are a type of cryptocurrency tied to stable assets as a way to reduce volatility. BTG Pactual sees the asset as a new instrument for investors looking to "dollarize" their portfolio and will provide a "security framework for the asset, such as risk analysis, anti-money laundering, and compliance processes."

"We recently launched eight new assets. We already have 22 cryptocurrencies on the platform. We now have our own stablecoin," said Marcel Monteiro, Mynt's Head of Operations.

Stablecoins are a type of cryptocurrency whose value is held in a stable asset, such as fiat currency or precious metals, to reduce value volatility. This is different from other cryptocurrencies such as Bitcoin whose price is very volatile and is not guaranteed by any asset or body.

Stablecoin creation is generally accomplished by locking the underlying asset at a fixed value, such as US dollars or gold, and issuing cryptocurrency tokens that are held at that value. When stablecoin tokens are traded on the market, their value will remain the same as the value of the assets held, with very little fluctuation.

Stablecoins are generally used as a means of transaction or as a hedging asset against price fluctuations of traditional currencies, especially in the cryptocurrency market which tends to be unstable. Its use in financial markets and international trade is also gaining popularity because it allows transactions at low fees and quickly, without having to involve third parties such as banks or other financial institutions.

However, the use of stablecoins also needs to be watched out for because some stablecoins do not have sufficient or reliable asset reserves, so they can fail in value. Therefore, the use of stablecoins needs to be accompanied by research and observation of the underlying assets that support the stable value of these stablecoins.