As part of the Financial and Technological Innovation and Technology Laboratory, Banco Central do Brasil chose Itaú and seven other projects.
A decentralized finance (DeFi) liquidity pool from Itaú Unibanco, the biggest private bank in the nation, was chosen by the central bank of Brazil as one of eight new initiatives for its most recent iteration of the Laboratory of Financial Innovations and Technologies (LIFT) program.
According to a study released on Tuesday, the LIFT public initiative from the Banco Central do Brasil seeks to improve financial inclusion.
S&P Global states that Ita is the biggest bank in Brazil, with $371.38 billion in total assets.
Itaú Unibanco will work on decentralized finance (DeFi) liquidity pool for Brazil’s central bank.
The move is part of the government’s Financial and Technological Innovation and Technology Laboratory (LIFT), a public program that aims to improve financial inclusion.
The central bank said in a statement released Friday that the platform will use blockchain and smart contracts to make it possible to store and trade tokens like stablecoins that are tied to the real, U.S. dollar, or other fiat currencies.
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Moreso, several blockchain initiatives are also included among the projects that were chosen. One suggestion from the fintech firm Lovecrypto intends to convert a stablecoin based on the Celo blockchain to CBDC, the digital currency of the Brazilian central bank.
Itaú said in July that it plans to launch a platform for tokenizing assets. This platform will turn traditional financial products into tokens and offer crypto custody services to Ita’s customers.
The Banco Central do Brasil also talked about seven other projects. One of them is Easy Hash, which wants to tokenize financial assets on the blockchain to spread credit risk among many creditors.
