A South American STO
News broke today that another established bank is jumping into the world of blockchain. BTG Pactual, the largest investment bank in Latin America, will be issuing digital securities through an upcoming STO.
These will take form as real-estate backed digital securities – giving international investors access to Brazilian properties. In addition to the distribution of these tokens, the bank has indicated their intent to develop a secondary trading market post STO. This will allow for much sought after liquidity in the digital securities.
BTG Pactual notes various benefits of hosting an STO that led to their decision.
- Less intermediaries
- 24/7 trading
- Liquidity in illiquid assets
- Access to Brazilian investments
- KYC/AML compliance
The digital securities to be distributed are known as ‘Reitbz’. Each of these digital securities represents fractionalized ownership of a professionally maintained portfolio of Brazilian real-estate. With this being the case, token holders will be entitled to scheduled dividends paid out.
The goal of the STO will see BTG Pactual raise a minimum of $3 million, up to a hard cap of $15 million. BTG Pactual has noted that 100% of invested funds will go towards asset purchases – they will not be collecting any fees.
To facilitate the STO, BTG Pactual will be turning to services rendered by Gemini. This will see the popular Gemini Dollar stablecoin used to both receive investments, and issue scheduled dividends.
Tyler Winklevoss, CEO of Gemini, spoke to CoinDesk about the development. He stated, “The tokenization of real assets is a major step forward in the evolution of the crypto economy…Working with BTG Pactual to leverage the Gemini dollar as the stablecoin for ReitBZ helps move the industry in the right direction.”
Multiple representatives from BTG Pactual have recently spoken on the decision to host an STO.
Gustavo Roxo, CTO of BTG Pactual, stated to Bloomberg,
“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.”
“The technology associated with this offering allows us to be a pioneer in providing access to asset classes that have historically been difficult for global retail investors to access. We are constantly exploring innovative ways to promote, democratize and encourage the development of financial and capital markets.”
BTG Pactual was founded in 1983, and has grown to be Latin America's largest investment bank in the time since. Company operations are overseen by CEO, Roberto Sallouti, with headquarters in Sao Paolo, Brazil.
Currently, BTG Pactual manages over $44 billion USD worth of assets.
In Other News
The news here today follows that of JPMorgan and their ‘JPMCoin’, which has divided camps on whether it is actually a cryptocurrency. With that in mind, here are a few other articles detailing recent industry events – each involving established companies.