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BTG Pactual Announces STO – ReitBZ

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PTG Pactual Announces STO ReitBZ in Brazil

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.

Global Investments

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

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.

ReitBZ via Homepage

ReitBZ via Homepage

ReitBZ (RBZ)

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.

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David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Security Token News

BlockState Gains Clarity on STO Taxation Within Switzerland

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BlockState Gains Clarity on STO Taxation Within Switzerland

No Tax. No Vat.

BlockState, a Swiss digital securities issuance platform, has recently closed their very own STO. Upon doing so, multiple questions were raised with regard to how capital, brought in during this event, would be taxed.

The STO hosted by BlockState represented the first of its kind in the region, making the young company a trailblazer within the digital securities sector.

As stated by BlockState, confusion remains on the taxation of capital raised through STOs…until now.

Clarity

In an effort to gain clarity on the situation, and set a precedent moving forward, BlockState turned to PST Legal. This law firm was tasked with gaining clarity from Swiss regulators. Their efforts were successful, with recent rulings being doled out.

It was ruled that capital raised through such means would NOT be subjected to either profit tax, nor value-added-tax (VAT). Rather, much like traditional capital raises, funds garnered through STOs structured in such as manner would only be subjected to ‘security issue tax’.

By achieving this, BlockState has not only made their own path easier moving forward, but for others as well. This ruling provides future STOs with precedent and clarity on how their actions will be received by regulators.

Commentary

In their release, BlockState comments on the development. They state that it was concluded that the,

“…issuance and the profit on the sale of own shares through a security token offering in this specific case does not trigger profit tax and added-value tax, but security issue tax. This is a unique tax clarification for the BlockState’s security token offering model and marks the first time that a Swiss tax authority has issued a ruling on the tax classification of an equity STO.”

With this development, BlockState commented on what it means to them. It was stated,

“We are excited to be part of the progress in this space, not only developing leading technology and legal frameworks, but being able to play an active role in the regulatory conversation around security tokenisation.”

BlockState

BlockState is a Switzerland based company, which was founded in 2018. Above all, Blockstate acts as an issuance platform for companies looking to tokenize assets. The company operates with a mission of unlocking trapped wealth, through the use of blockchain technologies.

CEO, Paul Claudius, currently oversees company operations.

Zug, Switzerland

With their progressive approach to blockchain, and companies taking part within the industry, Switzerland is fast becoming a hub for the technology. This has led to the town of Zug being dubbed ‘Crypto Valley’.

Companies involved with blockchain have been drawn to the area, as the Swiss government has taken the initiative to provide clarity on law and regulations governing the sector. Being afforded this clarity allows for these companies to operate efficiently, and without fear of repercussions for actions taken.

In Other News

In months past, we have detailed development pertaining to BlockState multiple times. From their migration of ERC tokens, to hosting STOs on behalf of others, BlockState has remained busy. The following articles dive deeper into each of these events

BlockState Hosts First STO for Streetlife International

BlockState to Add ERC Tokens to Corda

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Prime Trust to Utilize Various Services Provided by Vertalo

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Prime Trust to Utilize Various Services Provided by Vertalo

On-Chain Cap Table

Building off of a relationship first established in 2018, Prime Trust and Vertalo have announced new growth in this partnership.

This development will see Prime Trust utilize, and benefit, from services provided by Vertalo, including cap-table management.

For a company to be successful, it is of great importance to have a thorough knowledge of its equity breakdown – including values, dilution, ownership, etc. This tedious process is made simple through services provided by companies such as Vertalo.

Shared Responsibilities

In their announcement, this paring of companies notes various areas in which they will find themselves cooperating. The following points were provided in their press release, describing how they will be working together.

  • The creation and support of on-chain cap tables for thousands of Prime Trust crowdfunding issuers through the Vertalo Registry, a service which is directly connected to Prime Trust’s Custody, KYC/AML, escrow, and onboarding services
  • Preferential pricing for Prime Trust clients who choose to utilize Vertalo’s B2B SaaS cap table platform, and simple opt-out for those who wish to use a spreadsheet or other platform to manage their investor file
  • The option for participating issuers (Prime Trust clients) to tokenize their cap tables from within their branded Vertalo interface at any time in the future, using any issuance platform or smart contract that is supported by an exchange and partnered with Vertalo

Commentary

Representatives from each company took the time to elaborate on this partnership, and what it means moving forward. The following is what each had to say on the matter.

Kevin Lehtiniitty, CPO for Prime Trust, states,

“Vertalo has come to the realization that mass adoption of asset tokenization requires that blockchain specific concepts such as wallets and addresses be black-boxed from the typical retail user. We at Prime Trust share the belief with the Vertalo team that crossing the chasm requires abstraction and simplicity, which makes us excited to announce this partnership. Using Vertalo’s very intuitive tools, any issuers from our crowdfunding business will be able to manage and tokenize their securities as well as provide their investors with UI access to view their investment. We’re very excited to continue working with the team at Vertalo on expanding our partnership and offering this tokenization potential to all our issuers. There’s much more to come with Vertalo which we’ll share with the world when the time is right.”

Dave Hendricks, CEO of Vertalo, states,

“Vertalo’s partnership with Prime Trust will provide their thousands of clients with Vertalo’s on-chain cap table, issuer and investor interfaces, enabling Prime Trust’s clients to directly connect with their investors for the goal of improving the investor relations and ownership experience. Prime Trust clients who convert to Vertalo will also be provided with ultra-low cost ‘optional tokenization’ of their cap table in the event that they want to convert their paper shares to digital assets for trading on Vertalo partners such as OpenFinance. This deep integration between Prime Trust and Vertalo builds on more than a year of co-development effort that has sought to simplify the purchase, management and sale of digital assets for both issuers and investors. We’re proud to work with the team at Prime Trust and look forward to announcing more useful innovations together soon.”

Prime Trust

Operating out of Las Vegas, Prime Trust was founded in 2016. The team at Prime Trust has developed a variety of offerings serving the digital securities sector. This includes custody, escrow, compliance, and more.

CEO, Scott Purcell, currently oversees company operations.

Vertalo

Operating out of Texas, Vertalo first launched in 2017. The company offers a variety of services tailored towards the blockchain industry – ranging from cap table management, to an issuance platform, and more. To date, they remain one of the most active companies within the digital securities sector.

In our on-going interview series, we have had the pleasure of interviewing CEO, Dave Hendricks. Visit this interview below to learn more about Vertalo and their plans for the future.

Interview Series – Dave Hendricks, CEO of Vertalo

In Other News

Each of the companies discussed here today have caught our attention on multiple occasions over the past year. The following articles elaborate on a few of the developments which each have made during this time.

Prime Trust Ramps up Security Measures with Help from Fireblocks

Vertalo Releases V-Token Software for Usage during Tokenization

Vertalo and tZERO See Influx of Talent as Multiple hiring’s are Made

 

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RISE Secures Broker-Dealer in Entoro Capital

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RISE Secures Broker-Dealer in Entoro Capital

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RISE Wealth Technologies has announced that they have secured a broker-dealer for their currently live security token offering. This role has been filled by Entoro Capital, and will see them provide their services immediately.

In their current STO, RISE has set out with a goal of raising $120 million in funding. These funds are being raised, as the company looks to fuel their continued expansion and product development.

For investors that take part in the STO, they will be rewarded with a variety of benefits.

  • Regular Dividends garnered from various platform features
  • 4% p.a. Extra Payback in addition to Profit Payouts
  • Entitlement to Proceeds should RISE undergo an IPO

Commentary

Upon making their announcement, representatives from each, Entoro Capital and Rise, took the time to comment. The following is what each had to say on the development.

James C. Row, Managing Partner at Entoro Capital, stated,

“RISE is led by serial-entrepreneurs with a strong management team and a proven track record, which was crucial to us…A strong confidence in the team is paired with a shared belief that the future in asset management will be technology-driven. This makes RISE a perfect fit for Entoro.”

Stefan Tittel, CEO of RISE, stated,

“We are excited to be partnering with Entoro who has proven to be an experienced partner for companies within the FinTech industry…Their strong cross-industrial network has for years been a valuable asset to many partnerships. With the Broker-Dealer Agreement for Capital Raise we anticipate a great deal of mutually beneficial opportunities and synergies for both companies – with most of these benefits accruing to our clients.”

RISE Wealth Technologies

RISE has operated since 2012, within Grunwald, Germany. Through the use of AI, the team at RISE have developed a set of trading algorithms. These are built to provide retail investors with access to professional style trading tactics.

CEO, Stefan Tittel, currently oversees company operations.

We recently covered RISE, as they look to raise capital through and STO. Check out the following article to learn more about this event.

RISE Wealth Technologies Aim for a $120 million Security Token Offering

Entoro Capital

Operating out of Houston, Texas, Entoro Capital is an investment bank that has shown great interest in blockchain technologies. This interest has led them to develop services and platforms such as OfferBoard, Entoro Xpress, and more.

Managing Partner, James C. Row, currently oversees company operations.

Strategic Partnerships Abound

This is not the first time that Entoro has played a pivotal role in an STO, or as half of a strategic partnership. The following articles discuss various examples demonstrating their rapid development and adoption as of late.

Elite Mining – The Future of Mining is Green

DigiMax & Entoro to Collaborate as Advisors on Digital Security Offering

Entoro Eyes Secondary Markets Through Partnership with Unicorn

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