Itaú Unibanco, the Largest Banking Institution in Brazil, Is Considering Issuing a Stablecoin

Banks from all over the world are eyeing stablecoins and how these new assets can fit into their business model.

Itaú Unibanco, the largest banking institution in Brazil, is considering the issuance of a stablecoin.

The possibility was raised by Guto Antunes, head of digital assets at Itaú, who spoke at an event of the bank about the bank’s interest in exploring new technologies and how this interest has been increasing.

“Of course, it’s 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,” said Antunes.

The executive pointed out that the pivot of the U.S. government’s stance on crypto and the final stage of the new administrative legislation on stablecoins are crucial for Itaú to take the next step.

According to Antunes, the role that these assets have taken in the narrative of geopolitics and the mentions of these instruments as tools to promote and protect the sovereignty of the dollar also add to the interest of the largest bank in Brazil and Latam.

According to the head of digital assets, Itaú is also evaluating the experiences of other financial institutions that are already issuing stablecoins and the finalization of the stablecoin regulation in the country.

“We are always open to understanding for our client whether it makes sense to have a stablecoin, even one in reals, within Itaú. But we are still learning with the experiences of the American banks and the finalization of the regulation here in Brazil,” said Antunes.

Moreover, Antunes shared his opinion on the proposal to ban stablecoin self-custody, as presented in a recent regulatory draft. According to him, he believes in an intermediate approach to these institutions’ idea.

“I think there might be an iteration of this idea. It could be interesting to create a self-custody wallet list that is approved by the central bank, allowing it to supervise these funds. Releasing them indiscriminately loses the objective of preventing illegal acts,” concluded Antunes.