The largest investment bank in Latin America, BTG Pactual, announced plans to host an STO in the coming weeks. The firm seeks to raise $15 million to further its Brazilian real estate platform named ReitBZ. If successful, the project could help bring much-needed investment capital into Brazil’s struggling real estate market.
PTG Pactual is no stranger to the Latin American real estate market. The firm has over thirty-five years of experience in the region. Additionally, PTG Pactual controls numerous multi-million dollar investment funds throughout South America. These portfolios include real estate in Chile, Peru, Columbia, and Brazil.
This latest venture would open up the Brazilian real estate market to a global audience. It would also represent the first time a tokenized real estate firm and major Brazilian banking institution partnered up. The move signals a move towards further institutional adoption of cryptocurrencies.
Gemini Trust Company LLC – Gemini Dollar – Stablecoin
The Gemini Trust Company LLC is another partner in the ReitBZ project. For their part, Gemini will integrate their stable coin known as the Gemini dollar into the platform. This token enables the settlement of transactions and receival of investment capital in real time.
Stable coins are pinned to fiat currency via an auditing system where one token is equivalent to one dollar. Tether is the best-known stable coin in the market but as of recently, a flood of new options are available.
Investors receive RBZ tokens to represent their investment. All RBZ holders are entitled to profit share dividends from their portfolio holdings. The RBZ token is a fully compliant security token regulated in Brazil. Also, the token is ERC-20 compatible. Consequently, all transactions occur on the Ethereum blockchain.
Brazilian Distressed Real Estate
In 2015 Brazil fell into the deepest recession in its history. Since 2017, the country has made a recovery and is now experiencing an economic boom. Not surprisingly, as Brazil continues along a path to economic recovery, its real estate market values also increase. The country’s GDP increased 1.1-percent in 2017 and the same amount in 2018. Economists predict a 2.5-percent increase if the trend continues throughout 2019.
Rio de Janeiro and Sao Paulo
The areas that were some of the worst hit during the recession are now some of the best investment properties in Latin America. Recognizing this potential for upside growth, PTG Pactual focused its efforts on two of the country’s premier cities – Rio de Janeiro and Sao Paulo. These cities are iconic symbols of Brazil’s resolve and recovery efforts in these regions are better funded. Now, global investors have access to the Brazilian market.
Tokenized Real Estate
Tokenized real estate allows more investors to participate in the market. Opening up the Brazilian market to global investment capital is one of the best ways to draw more funds into the region and further development and reconstruction desires. Security tokens enable tokenized real estate to operate in a compliant manner.
A Strong Signal
The ReitBZ STO is a strong indication of what is to follow in the STO market. Major banking institutions now see the advantages of blockchain technology. The security and efficiency gained with a blockchain system are undeniable. If the ReitBZ platform accomplishes its goals, you can expect to see similar partnerships formed throughout the region.