Brazil’s leading financial institution, Itaú Unibanco, is exploring the possibility of creating a stablecoin.

Itaú Unibanco, Brazil’s largest financial institution by assets, is contemplating the issuance of its own stablecoin, though the final decision will largely depend on how regulatory frameworks in Brazil evolve and how stablecoin initiatives by U.S. financial institutions progress.

According to Guto Antunes, Itaú’s head of digital assets, the bank is closely monitoring developments in the U.S. to gauge the success of stablecoin implementations before committing to its own project. Antunes spoke at an industry conference in São Paulo, where he emphasized the growing potential of blockchain as a settlement tool for financial transactions.

“Itaú has always kept an eye on stablecoins. We cannot ignore the value blockchain brings in terms of executing transactions directly and securely,” Antunes commented, with local news outlets reporting his remarks. While stablecoins are not yet a priority, they remain an important topic for the bank’s strategic agenda.

The renewed attention to stablecoins comes amid shifting political winds in the U.S., where lawmakers have rejected a central bank digital currency (CBDC) in favor of promoting private stablecoin initiatives that support the U.S. dollar’s role as the world’s reserve currency.

In Brazil, regulators are actively considering how stablecoins should fit into the existing financial system. Currently, a public consultation—Consulta Pública No. 111—is underway to explore the regulatory framework. Itaú is waiting for the central bank’s guidance on the matter before deciding whether to move forward with its own stablecoin project.

Antunes also raised concerns regarding a proposed ban on self-custody for stablecoins in Brazil’s draft regulations. This is significant, especially as Brazil has already prohibited major pension funds from investing in cryptocurrencies, making the regulatory landscape for digital assets in the country a critical factor in Itaú’s decision-making.