Brazil’s largest bank, Itaú Unibanco, is exploring the possibility of launching its own stablecoin, joining a growing trend among traditional financial institutions. The decision will be influenced by the regulatory landscape in Brazil and the success of similar initiatives by major international banks.
This move by Itaú comes at a time when traditional financial institutions around the world are showing interest in developing or launching stablecoins. In Japan, Sumitomo Mitsui Financial Group (SMFG) is planning to create infrastructure for stablecoin issuance and payments. The project aims to use stablecoins for settlements connected to tokenized bonds and real estate assets, with a pilot program expected later this year and a full launch scheduled for next year.
In the US, Bank of America CEO Brian Moynihan recently confirmed the bank’s readiness to introduce a dollar-backed stablecoin, pending clear regulatory guidelines from Congress. This announcement places Bank of America among a growing number of prominent banks looking to enter the stablecoin market.
These developments follow US President Donald Trump’s rejection of a central bank digital currency (CBDC) in favor of stablecoins, shifting the focus towards private-sector alternatives rather than state-issued digital currencies.
For traditional banks like Itaú, stablecoins represent a balance between blockchain technology’s efficiency and programmability and the familiarity and trust associated with fiat currencies. Itaú, which has previously explored digital asset custody and tokenization services, is closely monitoring the progress of its counterparts in the US and Asia as they navigate regulatory changes and technical challenges.
While Brazil’s central bank continues to work with policymakers to define regulations around stablecoin issuance by banks, Itaú’s cautious approach reflects the evolving nature of the industry. A successful stablecoin launch by Itaú would position the bank among a select group of global institutions modernizing payment infrastructure through fiat-pegged, tokenized instruments.
As momentum for stablecoins grows worldwide, Itaú’s preparedness signals Latin America’s readiness to participate in the next phase of digital finance. The region is poised to play a significant role as the industry continues to evolve.
Overall, Itaú Unibanco’s consideration of launching its own stablecoin underscores the broader trend of traditional financial institutions embracing blockchain technology and digital assets to enhance their services and remain competitive in a rapidly changing financial landscape.