Banco BTG Pactual, a Brazilian investment bank, is planning to use a Security Token Offering (STO), a more regulated version of an Initial Coin Offering (ICO). The announcement happened today, February 21, and the bank has affirmed that its blockchain-based security will be backed by the bank and real estate assets in Brazil.
The expectations of the company are that the value of the tokens will rise to over $15 million in due time. In order to establish some important liquidity for the market, the company is also thinking about opening a secondary market for the tokens.
Investors interested in the company’s token will be able to buy the tokens, which will have performance tied to the company and they will be able to receive periodic profits for their investments. International investors will also be able to purchase ReitBZ (RBZ) tokens, according to the bank.
The CEO of BTC Pactual, Roberto Sallouti, has affirmed that the blockchain technology will help the company to be a pioneer in the tokenization of assets in Brazil. This way, the company will make it easier for international investors to get access to these assets without having any difficulty. This, the CEO believes, will help the company to democratize and encourage the development of new financial markets in the country.
BTG Pactual will use the Gemini Trust, created by the Winklevoss Twins, in order to create a legitimate STO. The company will also use the USD-backed stablecoin of the company, Gemini Dollar, in order to receive the investments.
Tyler Winkless, the CEO of the Gemini Trust, believes that the tokenization of assets is a really big step for the industry and that the bank will use GUSD in order to move the industry in the right direction.
All the investors will have to pass a Know Your Customer (KYC) test and a Anti-Money Laundering (AML) test before they are able to invest. Curiously, residents from Brazil will not be able to invest, as well as people from the United States.
The Token’s Portfolio
In case you are wondering, most of the real estate that will be the basis of this portfolio will be of properties in urban areas of the state of Rio de Janeiro and São Paulo, both in the Southeastern part of the country.
According to the official announcement of the bank, some of the properties that were chosen were impacted by the recession in the country and have a big potential for profit in the country now.
This announcement comes just a few days after the major bank JPMorgan has announced the launch its own “crypto”, which is actually not crypto but a centralized token that will be used in-house.
JPM Coin will be used in order to settle transactions between clients of the company in real time. It will initially be created on top of the Quorum blockchain, but it could be upgraded in the future as well.
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