Brazil’s Biggest Bank for Investments is Releasing Its Own Blockchain Security Token for Real Estate Sector
The largest investment bank of Latin America, Banco BTG Pactual SA has announced that they will release their own security token.
Banco BTG Pactual S.A., together with its subsidiaries, provides financial products and services in Brazil and internationally. The company’s investment banking services include underwriting of public and private debt and equity products; advisory services relating to mergers and acquisitions, divestitures, restructurings, spin-offs, reorganizations, and other corporate transactions.
It's the biggest investment bank in Latin America and the Caribbean. Also the 5th biggest bank in Brazil. With assets of R$218.3bn and shares traded on the BM&F Bovespa and NYSE Euronext, BTG Pactual has offices in primary Latin American cities and in the world's leading financial centers.
The company intends to raise as much as $15 million through an initial offering for a token called ReitBZ that will be backed by distressed real estate assets in Brazil. Investors who intend to buy the token can do so using Gemini Dollar or Ethereum. Periodically, the investors will receive dividends from the recovery of distressed assets. This will be handled by a company named Enforce which is also BTG-owned. The expected returns are expected to be around 15-20%.
Gustavo Roxo, the bank’s chief technology officer, said:
“BTG is deploying its own capital to provide liquidity because it really believes in the crypto business. We came up with this structure because we think investors in the digital world have a higher risk-taking appetite.”
BTG’s partner responsible for the project, Andre Portilho, informed that they had been taking a close look at cryptocurrencies for over a year. He added:
“we thought Bitcoin (BTC) and other currencies were turning too volatile, but we saw an opportunity with this token to try something new — but also with our skin in the game.”
This news by Banco BTG Pactual SA follows JPMorgan Chase & Co launching their own JPCoin. Given the fact that the bank moves more than $6 trillion all over the world every day for corporations, JP Morgan is preparing for a future where cross-border payments and corporate debt issuance is moving to the blockchain.