Brazil’s Largest Bank, Itau Unibanco to Launch Stablecoin.

Itaú Unibanco, the preeminent banking institution in Brazil and throughout Latin America, has recently articulated its consideration of issuing a proprietary stablecoin to serve its extensive customer base, which exceeds 55 million individuals.

This is amidst the global banking sector is exhibiting a growing interest in stablecoins, exploring their potential integration into existing business models.

Itau Unibanco Eyes Stablecoin Launch

Itaú Unibanco’s contemplation of this venture is marked by a measured approach. It reflects a desire to glean insights from the experiences of American banks currently engaged in stablecoin issuance and to await the finalization of stablecoin regulations within Brazil.

This cautious posture underscores a commitment to thorough due diligence and regulatory compliance.
Guto Antunes, the Head of Digital Assets at Itaú, has articulated that the bank’s interest in stablecoins has been significantly amplified by the evolving stance of the U.S. government regarding cryptocurrencies.

He further emphasized the burgeoning relevance of stablecoins, particularly in light of their recent mention as potential instruments for promoting and safeguarding the sovereignty of the U.S. dollar.

Before embarking on issuing a stablecoin, Itaú Unibanco is undertaking a comprehensive evaluation of the experiences of other financial institutions that have already ventured into this space. The bank is also closely monitoring Brazil’s progress and finalization of stablecoin regulations, ensuring alignment with all applicable legal and regulatory frameworks.

The World’s Stablecoins Trend

Mr. Antunes characterized stablecoins as the prevailing “hot topic” within the financial market, noting their demonstrated utility in both the United States and Brazil, where a substantial portion of funds operating with crypto leverage utilizes them.

Addressing a recent regulatory draft proposing a ban on stablecoin self-custody, Mr. Antunes advocated for a more nuanced and balanced approach. He suggested the establishment of a centralized list of approved self-custody wallets overseen by the Brazilian central bank, enabling a degree of supervisory control over these funds.

Furthermore, Mr. Antunes acknowledged the possibility of even a Brazilian real-denominated stablecoin within Itaú’s future offerings.

“We are always open to understanding for our client whether it makes sense to have a stablecoin, even one in real, within Itaú,” he stated

He argued that an indiscriminate prohibition of self-custody would undermine the objective of preventing illicit activities, asserting that a measured approach is crucial to achieving both regulatory compliance and fostering innovation.