Itaú, Brazil's largest private bank, will develop a DeFi liquidity pool

As part of the Financial and Technological Innovation and Technology Laboratory, the Banco Central do Brasil selected seven other initiatives.

Brazil's central bank has chosen Itaú Unibanco to work on a decentralised finance (DeFi) liquidity pool.

The move is part of the government's Financial and Technological Innovation and Technology Laboratory (LIFT), a public programme aimed at improving financial inclusion.

The platform, which will use blockchain and smart contracts, will allow the custody and exchange of tokens such as stablecoins connected to the real, US dollar, or other fiat currencies, according to a statement issued by the central bank on Friday.

Itaú said in July that it intends to build an asset tokenization platform that will convert standard finance products into tokens and provide crypto custody services to its customers.

The Banco Central do Brasil also unveiled seven other projects, including Easy Hash, which aims to tokenize financial assets on the blockchain in order to decentralise credit risk among multiple creditors.

By fLEXI tEAM