- Both the parties believe that utilizing the Tezos blockchain will help enhance their digitization efforts
- BTG Pactual’s, ReiBZ token will now migrate from Ethereum platform to Tezos’s blockchain
The Tezos platform for smart contracts and decentralized applications launched back in September 2017. The Tezos Foundation is the non-profit organization behind it. Since then the project has made significant developments and various partnerships including a partnership with the Yonsei University for Blockchain Talent Development. This team announced on July 3 via a press release that BTG Pactual, the third largest investment bank in Latin America alongside Dalma Capital, a Dubai-based asset management firm, has just announced their plans to use the chain to launch a security token offering. Doing so, the banks hope to “address a deal pipeline in excess of $1 billion for existing and prospective token issuances.”
Promoting digitization
As per the press release, both parties want to utilize Tezos to further enhance their efforts to digitize the system. The release states:
“As governments worldwide and in the Middle East take measures to introduce digitization initiatives across industries, blockchain spending globally is to reach $2.9 billion this year, and $307 million in MEA region by 2021.* Utilizing Tezos, a self-amending blockchain and smart contracts platform will encourage BTG Pactual and Dalma Capital to enhance their digitization efforts, by transacting in digital assets.”
Last February, BTG Pactual became the first major investment bank that officially launched a Security Token Offering (STO) termed ReiBZ, an ERC-20 token that is backed by the real estate industry of Brazil. The token was launched on the Ethereum platform but will now move to the Tezos chain. Andre Portilho, BTG’s partner responsible for the STO initiative, commented:
“While the bank remains protocol and technology agnostic, and will continue to utilize the Ethereum protocol, we see Tezos as a global player with a robust blockchain for asset tokenization.”
Tezos over Ethereum
It can be noted that the announcement highlighted the fact that Tezos, is a “self-amending blockchain” and smart contracts platform. The primary difference between the two is that it is validated by proof-of-stake and has on-chain governance, while Ethereum has a proof-of-work model, and off-chain governance. The later has caused plenty of debates in the crypto community. Tezos, however, has been termed as one of the potential “Ethereum killer” projects. Arthur Breitman, the start-up’s co-founder, last year stated that his rationale for the Tezos system was to have a “solid, safe ledger,” and this can’t be achieved if there’s only one person in charge.
Tim Draper, CEO, and Founder of Draper Associates and a prominent stakeholder commented:
“We are excited to see BTG Pactual and Dalma Capital making use of the Tezos blockchain–we are believers in the Tezos project and see a strong use case for security tokens.”