Famous crypto exchange Crypto.com has announced that it is pairing up with Latin America’s biggest investment bank, BTG Pactual, to promote its BTG Dol stablecoin.
The promotion will be carried out in a manner in which the BTG Dol stablecoin will be paired with crypto assets like Bitcoin and Ether on the Crypto.com trading platform. BTG Pactual will view this move as an effort by the banking firm to promote crypto banking in the region further.
Like any other stablecoins, BTG Dol will have its value fixed at $1. For that to happen, the stablecoin has to be pegged to either a fiat currency like the dollar or euro or to a commodity, in which gold is the most likely candidate. In the case of BTG Dol, the firm has announced that it is pegged to the U.S. dollar at a 1:1 ratio.
Crypto.com announced on February 27, 2024, where it stated that it would list BTG Pactual’s BTG Dol to its exchange while also highlighting the point that the new collaboration is aimed at promoting the use of the new stablecoin, which will be ensured by pairing it with known crypto assets.
Why are stablecoins like BTG Dol paired with crypto assets?
Stablecoins are pegged to crypto assets like Bitcoin or Ether primarily for stability and liquidity.
By anchoring the value of a stablecoin to a well-established cryptocurrency like Bitcoin or Ether, issuers aim to mitigate the volatility inherent in pure crypto markets.
It provides users a sense of security and predictability, as they can easily convert their volatile cryptocurrencies into stablecoins during market downturns or when seeking to hedge against price fluctuations.
Additionally, pairing stablecoins with popular crypto assets enhances their liquidity and accessibility within the broader cryptocurrency ecosystem, facilitating seamless transactions and fostering adoption across various trading platforms.
Crypto.com’s vision for the Latin American Market
According to the Crypto.com exchange, this new partnership aligns with the company’s goal to expand the reach and impact of the digital economy in the Latin America region.
The company is also hoping to expand its reach in the region as it believes there is a huge potential for the company in this market.
According to their announcement, crypto.com hopes to achieve the ultimate goal of connecting traditional and digital finance for its users.
Andre Portilho, the head of BTG’s digital assets arm, has expressed his enthusiasm regarding the company’s latest venture with Crypto.com. He believes this new partnership will push them forward to integrating traditional finance with cryptocurrency.
Portilho also emphasized that the move will prove highly influential in giving their client base vital access to the digital landscape.
On April 4, 2023, the stablecoin was initially introduced to allow holders to incorporate a portion of their equity into dollar-denominated assets.
In simple words, this is an avenue for people to convert some of their assets, like stocks or other investments, into assets valued in U.S. dollars. It allows them to have a part of their wealth represented in dollars through the use of the stablecoin.
Developed on BTG’s cryptocurrency technology platform, Mynt, which was established to facilitate crypto investments, the stablecoin was envisioned by Portilho to offer investors a simpler and more secure avenue for accessing dollar-based investments.
Its introduction marked an effort to streamline the process of investing in dollars, catering to investors seeking stability and ease of access in their financial endeavors.
Crypto.com’s CEO, Eric Anziani, has said that the exchange believes in the Latin American region’s huge potential to expand the digital market.
According to Anziani, this is the vision of the Crypto.com exchange for the Latin American market, and it is similar to BTG’s goal for the same market, which is empowering the economy within Latin America.
The recent collaboration further expands Crypto.com’s presence in the region following its acquisition of a payment institution license from Brazil’s central bank.
The license, obtained in 2022, permits Crypto.com to lawfully provide regulated fiat wallet services to its customers in Brazil. The partnership capitalizes on the exchange’s established foothold in the country, leveraging its regulatory compliance to enhance its offerings and strengthen its position within the Brazilian market.
