Itaú Unibanco has been selected by Brazil’s central bank to develop a decentralized financial Liquidity Pool (DeFi).
This is an activity to strengthen the financial inclusion of the national government’s Financial and Technological Innovation Laboratory (LIFT).
The central bank said in a statement Friday that the platform uses blockchain and smart contracts and will allow custody and exchange of tokens, such as stablecoins pegged to U.S. dollars or other Fiat currencies.
In July, Itaú announced that it plans to launch an asset tokenization platform to convert traditional financial products into tokens. The unit also announced that it will provide cryptocurrency custody services to its customers.
In addition, Banco Central also announced 7 other projects, including Easy Hash. This is a project that studies how to tokenize financial assets on the blockchain to decentralize credit risk among lenders.