Banco BTG Pactual, the largest private investment bank in Latin America, has started to issue tokenized real estate security tokens on the Tezos blockchain.
However, this won't be the first occasion when the investment bank has made use of blockchain to issue security tokens for real estate, earlier the bank has launched ReitBZ token on the Ethereum blockchain. The ReitBZ token project raised $10 million in Ether and Gemini Dollar.
The bank revealed that they have managed to raise $2.5 million in fiat for the Tezos project and $5 million worth of the ReitBZ tokens will be moved to Tezos as well.
The largest investment bank in Latin America also revealed the reason behind moving its real estate backed security tokens from Ethereum to Tezos suggesting they are keeping their options open and diversification of the tokens on two different blockchains would help them in the long run. Andre Portilho, head of digital assets at BTG Pactual commented on the move:
“We don't want to be tied to just one blockchain. Because I cannot tell which blockchain will prevail. <…> We want to have other options, other blockchains that might serve better the pieces of tokenization and issuing tokens that represent real assets.”
Issuing Digitized Token For Assets Come At a Cost But With Added Advantages
Portilho revealed that issuing a digitized asset surely turned out to be costlier than its traditional counterparts. However, he was quick to point out that a digitized version has added advantages, which would cover the cost in the long run.
He claimed that issuing $10 billion worth of tokenized security would cost the same as issuing $10 million worth of the same tokenized assets. Tokenization also paves the path for scalability.
The Latin American Bank earlier considered taking help from service providers like Securitize but later decided to do it themselves to comprehensively understand the process of digitization of assets and how the tokenization process works. The bank believes this would help them in reaching their potential clients.
BTG Pactual is also working on listing their security tokens on new and upcoming exchanges in Asia. Their primary focus would be to offer adequate liquidity to the clients overtime to lure more investors and clients in the tokenization arena.