Itaú Unibanco, the leading bank in Brazil by assets, is assessing the possibility of launching its own stablecoin amid evolving regulatory discussions and as U.S. financial institutions gradually enter the market.

The bank’s decision may largely depend on the performance of American institutions with their own stablecoin initiatives, as remarked by Guto Antunes, the head of digital assets at Itaú, during an industry event in São Paulo. Antunes emphasized the growing momentum surrounding blockchain-based settlement systems.

“Itaú has always had stablecoins on its radar. We cannot ignore the strength that blockchain has to settle transactions atomically,” local media quoted him as stating. Stablecoins remain a topic of ongoing discussions within the bank.

This renewed focus on stablecoins aligns with a recent political shift in the U.S., where lawmakers rejected a CBDC in favor of encouraging private stablecoin alternatives to maintain the dollar’s supremacy.

In Brazil, regulatory bodies are currently conducting a public consultation—Consulta Pública No. 111—aimed at assessing how stablecoins could be integrated into the existing financial framework. Antunes mentioned that the bank is awaiting the central bank’s regulations before proceeding with any internal initiatives.

Additionally, Antunes expressed concerns regarding a potential prohibition on self-custody in the draft stablecoin regulations in Brazil. Notably, Brazil has restricted major pension funds from investing in cryptocurrencies.