Brazil’s Largest Private Bank, Itaú Unibanco, Considers Launching Its Own Stablecoin Amid Regulatory Shift

Brazil’s Largest Private Bank, Itaú Unibanco, Considers Launching Its Own Stablecoin Amid Regulatory Shift

Itaú Unibanco, Brazil’s largest private financial institution, has confirmed that it is actively exploring the issuance of its own stablecoin. The move reflects both the domestic progress in regulatory discussions and the global trend of major financial institutions entering the stablecoin market, particularly in the United States.

A key influence on Itaú’s decision appears to be recent developments in U.S. legislation. The U.S. Congress has signaled stronger support for private-sector stablecoins over a central bank digital currency (CBDC), setting a favorable precedent for financial innovation led by commercial entities. Guto Antunes, head of Itaú’s digital asset division, stated that the performance of U.S. financial institutions in the stablecoin space has had a significant impact on Itaú’s strategic direction.

With the global expansion of blockchain-based payment infrastructure, Itaú Unibanco sees strong potential in atomic settlement capabilities offered by blockchain technology—transactions that are instant, final, and irreversible. This could significantly enhance operational efficiency and reduce counterparty risk.

However, the Brazilian regulatory environment may pose challenges. Brazil’s central bank is preparing to implement stricter oversight of stablecoin transactions. Central Bank President Roberto Campos Neto acknowledged that while stablecoins are gaining traction as a legitimate means of payment, regulatory frameworks must be reinforced to mitigate risks and ensure consumer protection.