Itaú Unibanco, Brazil’s largest financial institution by assets, is considering the launch of its own stablecoin, with the decision dependent on both evolving regulatory conditions in Brazil and the success of similar initiatives by financial institutions in the U.S.

Guto Antunes, head of digital assets at Itaú, explained that the bank has been closely monitoring developments in the U.S., where financial institutions are progressively moving forward with stablecoin projects. At an industry event in São Paulo, Antunes highlighted the increasing importance of blockchain technology for transaction settlement.

“We’ve always had stablecoins on our radar. Blockchain’s ability to settle transactions quickly and securely cannot be overlooked,” Antunes said, noting that while stablecoins are still under discussion, they are an important subject for Itaú.

The surge in interest surrounding stablecoins follows recent political developments in the U.S., where lawmakers have rejected the idea of a central bank digital currency (CBDC) and instead favored supporting private stablecoin projects to maintain the dollar’s global dominance.

In Brazil, the central bank is currently conducting a public consultation, Consulta Pública No. 111, to explore how stablecoins could be integrated into the country’s financial system. Antunes stated that Itaú is waiting for the regulatory framework to be defined before pursuing any internal initiatives.

He also expressed concerns about a proposed ban on self-custody in Brazil’s draft stablecoin regulations, especially in light of Brazil’s recent decision to prohibit major pension funds from investing in cryptocurrencies, adding further complexity to the regulatory environment surrounding digital assets in the country.