BTG Pactual Bank to Offer Its Stablecoin on Crypto.com Trading Platform – Ledger Insights

In April of the previous year, BTG Pactual, a premier investment bank in South America, introduced the BTG Dol dollar-backed stablecoin to the market. Recently, the digital currency platform Crypto.com has stated its intention to list this stablecoin. Additionally, it will incorporate the stablecoin into trading pairs alongside major cryptocurrencies like BTC and ETH. Presently, the BTG Dol stablecoin has accumulated a market capitalization sitting at $4.5 million.

Up until this point, the movement of BTG Dol stablecoins has been restricted. The initial strategy for the release of the stablecoin by the bank was on its own digital currency platform, and its utility was as a vehicle for dollar investment rather than for payment or transaction purposes. In contrast to many stablecoins, BTG Dol’s distribution is tightly centralized, with all transactions taking place between just two central omnibus wallets managed by BTG Pactual. Consequently, the daily record seen on the Polygon blockchain for the stablecoin shows only minting and burning processes rather than direct user transfers.

This centralized approach partly caters to ease the management of anti-money laundering (AML) compliance, a domain where the banking sector’s rigor often exceeds that seen in the cryptocurrency industry. Therefore, for Crypto.com, listing such a product would typically involve navigating numerous regulatory checks.

To shed further light, BTG Dol is categorized as a stablecoin and not as a tokenized bank deposit. This signifies that it is backed by independently-held reserve assets and not simply as a digital representation of bank-held funds.

“BTG Pactual has been a trailblazer in adopting cryptocurrency solutions within conventional finance, underscoring our dedication to innovation and high standards,” commented Andre Portilho, the Partner and Head of the Digital Assets Unit at BTG. “With this latest development, we continue to enhance the spectrum of digital asset options we provide to our clientele,” he added.

Additionally, December marked the inclusion of Societe Generale FORGE’s EURCV stablecoin on the Bitstamp cryptocurrency exchange. Like BTG Dol, the EURCV is a veritable stablecoin, having a foundation of segmented, reserved assets.