Brazilian Bank Raising Funds Via Security Token Offering

| Publish date: 02/22/2019

In the latest cryptocurrency news, a Brazilian bank is believed to be raising millions of dollars in funds. The process is currently being done through the offering of a security token.

$15m in Funding

According to the official report, the Banco BTG Pactual said that it would back its very own blockchain-based token with troubled Brazilian real estate assets. And by doing so, the company expects to raise the funding figure to a whopping $15 million. In addition, it plans to establish a secondary market after the sale, so it can successfully offer liquidity to the tokens.

The offering, in particular, is expected to enable investors in investing in the Brazilian real estate market. More importantly, based on the performance involving tied assets, they could have the ability to receive periodic profits.  As far as international investors are concerned, they will have the ability to purchase the token, which is called ReitBZ (RBZ), and it will be done via a certain structure. The bank proposes that the structure is not only low-cost but also tax-efficient.

According to Roberto Sallouti, the CEO of BTG Pactual, the technology that is deeply associated with this offering gives them the opportunity to be a pioneer in offering access to asset classes, all of which have been historically a challenge for international retail investors to access. The executive added that he and his team are continuously exploring different innovative ways to democratize, encourage, and promote the development of capital and financial markets.

Utilizing Gemini Dollar

As for the sale, the bank is reportedly partnering with the titular Winklevoss-founded company called Gemini Trust Company, LLC (Gemini). By doing so, they are able to utilize the latter’s regulated U.S.-dollar backed stablecoin called the Gemini dollar in order to receive investment capital. At the same time, the partnership will allow the bank to distribute dividends all over the Ethereum blockchain.

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The tokenization of real assets is not only a significant change, but it is also a huge step forward in the evolution of the digital currency economy. Working with the bank in order to leverage the Gemini token, which serves as the stablecoin for RBZ, paves the way for the industry to move in the right direction, according to Gemini CEO Tyler Winklevoss.

As for the token’s portfolio, it is said to comprise town properties located in the states of Sao Paulo and Rio de Janeiro. BTG Pactual is hoping to include properties that have been greatly affected by the economic recession in the country.


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