Brazil’s Largest Bank Itaú Unibanco Eyes Stablecoin Issuance Amid US Regulatory Shift

Influenced by the United States’ changing crypto regulatory landscape, Brazil is considering issuing its own stablecoin. In a recent development, Brazil’s largest bank, Itaú Unibanco, is exploring the launch of a proprietary stablecoin, potentially extending its services to more than 55 million customers.

Significantly, Brazil’s move aligns with the global trend of exploring the potential of stablecoins. Before finalizing the decision, the bank is watching other financial institutions that have already adopted these stable crypto assets.

Largest Bank in Brazil Issues Stablecoin: What To Know?

According to a local report, the largest Brazilian bank, Itaú Unibanco, has taken the initiative to launch an in-house stablecoin. This move comes amid the increasing global interest in stablecoins as an alternative to the highly volatile cryptocurrencies.

Guto Antunes, Itaú Unibanco’s digital asset head, asserted that the bank is open to exploring the possibility of creating a stablecoin pegged to the Brazilian real (BRL). The bank is currently exploring the potential benefits and feasibility these digital assets for their clients. He cited, We are always open to understanding for our client whether it makes sense to have a stablecoin, even one in reals, within Itaú.”

US Crypto Regulations Influence Brazil

The US government has been undergoing a significant regulatory overhaul under President Trump. With the restructuring of the US Securities and Exchange Commission (SEC) the regulatory landscape has seen a major shift, leading to the dismissal of multiple crypto lawsuits.

In addition, the Trump government has given a specific focus on stablecoin regulation and growth. Recently, the US passed the STABLE Act, introducing exclusive guidelines for USD-pegged digital assets like USDT and USDC.

Interestingly, the Brazilian bank’s proposal to issue a stablecoin is primarily driven by the US’ progressive stance on digital assets. Antunes commented that the bank has been influenced by America’s stablecoin developments. He noted,

Of course, it is always on the agenda. The issue of stablecoins has always been on Itaú’s radar. We cannot ignore the power that blockchain has to settle transactions atomically.

Brazil Prohibits Pension Funds from Investing in Crypto

In a recent development, Brazil’s financial policy body, the National Monetary Council (CMN) issued a ban on pension funds’ crypto investments. The organization cited concerns about crypto assets’ inherent risks as the key reason for the decision.

Meanwhile, the Brazilian bank’s plans to issue a stablecoin comes following the Cardano Foundation’s expansion into the country. Recently, Cardano joined hands with SERPRO, the Brazilian government’s information technology company.