Argentine Banks Make Bold Move with Peso-Pegged Stablecoins... Circumventing Regulations via Subsidiaries

▲ Argentina, Peso, Stablecoin/AI Generated Image

Argentine banking groups have embarked on the development of peso-pegged stablecoins. They have put subsidiaries forward to circumvent the central bank's ban on cryptocurrency services.

According to crypto media outlet Bitcoin.com on July 28 (local time), BIND Group and Petersen Group are each developing institutional-only peso stablecoins. Both products are focused on introducing programmable money features for corporate payments and treasury management.

BIND Group, with over $2 billion in assets under management, is reportedly developing a peso stablecoin through its affiliated virtual asset operator, BEN. BEN plans to partner with Circle (CRCL) to provide institutional payment and corporate treasury management services that comply with local regulations.

Petersen Group is developing DIPE through a separate subsidiary. Cryptocurrency service company Lirium is providing technical support, and DIPE has already prepared its white paper. Lirium provides crypto-based services to Banco Galicia and Brubank.

The reason banking groups are not directly engaging in the business is due to regulations from the Argentine Central Bank. The central bank banned private banks from offering cryptocurrency services to customers starting in May 2022. BIND Group and Petersen Group are pursuing stablecoin projects through affiliated companies, not banks themselves.

Peso stablecoins are expected to be used for corporate treasury management, on-chain conditional payments, and collateralized loan operations. The central bank is reportedly reviewing the lifting of the ban on cryptocurrency services for banks. In March, the Argentine securities regulator deemed the peso-pegged stablecoin 'argt' an unregistered security and sanctioned related operations.

[Article Key Summary]

-BIND Group and Petersen Group are developing peso-pegged stablecoins targeting the institutional market.

-The two banking groups are pursuing the business through subsidiaries to circumvent the central bank's ban on cryptocurrency services.

-Peso stablecoins are expected to be utilized for corporate treasury management, conditional payments, and collateralized loan operations.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*