BIND Group and Petersen Group are developing peso-pegged stablecoins targeting Argentina's institutional market through subsidiary companies. The initiatives aim to provide programmable money services for treasury management and collateralized credit operations while bypassing a May 2022 Argentine Central Bank ban that prohibits private banks from offering cryptocurrency services. BIND Group's project operates through BEN, its virtual asset service provider subsidiary, while Petersen Group's offering, named DIPE, is being developed with support from crypto-as-a-service provider Lirium. The projects emerge as Argentina's regulatory landscape remains restrictive, though the central bank is reportedly considering lifting its crypto service ban for private banks.
BIND Group Develops Peso Stablecoin Through BEN Subsidiary
BIND Group, a holding company with over $2 billion in assets under management that owns BIND Banco Industrial, is developing a peso stablecoin through BEN, its in-house virtual asset service provider. The conglomerate announced a partnership with Circle to provide institutional access to BEN customers, supporting payments and treasury use cases in compliance with local regulations. The initiative focuses on delivering programmable money services to institutional clients rather than retail customers.
Petersen Group Advances DIPE Stablecoin With Lirium Partnership
Petersen Group, which owns several regional banks, is developing its peso stablecoin initiative through a subsidiary with support from Lirium, a company providing crypto-as-a-service solutions for Banco Galicia and Brubank. The offering, named DIPE, has matured to include its own whitepaper. According to a report from Iproup, the project represents the second major banking-backed peso stablecoin initiative in Argentina's institutional market.
Banking Groups Use Subsidiaries to Bypass 2022 Central Bank Ban
Both initiatives are being advanced by companies backed by banking conglomerates rather than by the banking groups themselves. The Argentine Central Bank banned private banks from offering crypto-related services to customers in May 2022. By structuring these projects through non-bank subsidiaries, BIND and Petersen Groups operate outside the scope of the central bank's prohibition while maintaining institutional banking connections.
Institutional Treasury Management and Credit Operations Targeted
The peso stablecoins target institutional sector use cases that benefit from smart contract properties for payments. Specific applications include treasury management operations, payments conditioned to onchain events, and collateralized credit management. The offerings differentiate from existing decentralized peso alternatives by having banking group support, with potential for future escalation to private banks if regulatory restrictions change.
Securities Regulator Blocked Argt Peso Stablecoin in March
In March, the argt peso stablecoin was targeted by Argentina's national securities regulator. The institution reported that argt, a peso-linked stablecoin, constitutes a security subject to capital market regulatory requirements and was being offered without due compliance. The regulatory action demonstrates ongoing scrutiny of peso-pegged digital assets despite institutional interest in programmable money solutions.
FAQ
Why are Argentine banking groups developing peso stablecoins through subsidiaries?
The banking groups use subsidiary companies to develop peso stablecoins because the Argentine Central Bank banned private banks from offering crypto-related services to customers in May 2022. By operating through non-bank subsidiaries like BEN (BIND Group) and a Petersen Group subsidiary partnered with Lirium, these initiatives can proceed outside the central bank's prohibition while maintaining connections to institutional banking infrastructure.
What institutional use cases do these peso stablecoins target?
The peso stablecoins target institutional treasury management operations, payments conditioned to onchain events, and collateralized credit management. These use cases benefit from the smart contract properties of digital pesos, allowing programmable money services that streamline institutional financial operations beyond traditional banking infrastructure.
