- Itaú Unibanco, Brazil’s largest bank, is exploring the launch of a stablecoin amid shifting Latin American crypto regulations.
- According to Guto Antunes, Itaú’s head of digital assets, Itaú has been eyeing stablecoins for some time.
- As Brazil continues to shape its own regulatory stance, Itaú is likely to become one of the major players in the digital revolution across Latin America.
Brazil’s largest bank, the Itaú Unibanco is reportedly considering launching its own stablecoin. This comes amid preparation as the bank monitors regulatory developments, as well as the success of similar initiatives by other financial institutions in the US. As blockchain technology gains traction in the banking sector, Itaú is looking towards positioning itself at the forefront of this shift.
Here’s how Itaú’s plans could reshape finance
Why Itaú Is Considering a Stablecoin
According to Guto Antunes, Itaú’s head of digital assets, during an industry event in São Paulo, the role of blockchain in financial transactions is growing. He noted that Itaú has been eyeing stablecoins for some time, due to their ability to conduct atomic settlements (instant transactions) while maintaining security.
However, the bank’s financial decision depends on multiple other factors, including Brazil’s changing regulatory framework, and the performance of similar initiatives in the US and other markets.
The renewed focus on stablecoins comes amid the shift in US policy concerning crypto, where lawmakers recently rejected a CBDC launch in favor of private-sector alternatives. This decision, which was led by president Donald Trump, has encouraged other non-US banks to look towards stablecoin issuance.
The Bank of America CEO Brian Moynihan has already confirmed that his bank is ready to introduce a dollar-backed stablecoin if Congress provides clear legal framework. These moves by these financial giants in the US is likely to influence Itaú’s strategy, as the bank assesses whether stablecoins can be used in broad applications, without infringing on regulation.
Brazil’s Regulatory Landscape
In Brazil, the government is working on a public consultation (called the Consulta Pública No. 111) to determine how stablecoins might be integrated into the country’s financial system. Itaú in particular, is following these discussions to make sure that its own stablecoin will be viable.
One of the key regulatory concerns involves a ban on self-custody of digital assets, which could affect ow individuals and businesses use stablecoins. Brazil has already restricted major pension funds from investing in cryptocurrencies. This shows that the country is still cautious about digital assets, and Itaú has a lot to consider before choosing to move forward with its stablecoin plans.
Is This A Global Trend Among Traditional Banks
So far, Itaú is not alone in considering stablecoins. Other traditional financial institutions around the world are recognizing the benefits of tokenized assets, and are jumping on the bandwagon.
For example, the Sumitomo Mitsui Financial Group (SMFG) in Japan is developing its own infrastructure for issuing stablecoins. The group is focusing on using these assets in settlements relating to tokenized bonds and real estate. In the United States as well, other banks alongside the Bank of America, are looking towards stablecoin solutions for their own payment systems.
Launching a stablecoin would help Itaú to enhance cross-border transactions for its operations and improve liquidity management for its customers in Brazil. While the bank is yet to make a final decision, it has shown a great deal of readiness to enter the stablecoin space. As Brazil continues to shape its own regulatory stance, Itaú is likely to become one of the major players in the digital revolution across Latin America.
