- The Brazilian bank is the latest to join crypto and plans to develop their own security token ReitBZ (RBZ)
- BTG has a system in place in case investors want to sell their shares
- This new reform is aimed at assisting the bank to cater to its distressed real estate projects cheaply
Latin America’s largest impartial bank, Banco BTG Pactual SA, joins the crypto space with its own security token in an effort to raise 15 million dollars, Bloomberg reports.
Through the initial offering of their token called ReitzBZ, the bank aims to raise 15 million dollars to back the distressed real estate assets in Brazil. The bank’s chief technology officer, Gustavo Roxo revealed that these tokens would be based on blockchain technology.
At first, the BTG tokens, ReitBZ (RBZ), will be available to investors worldwide except in Brazil and the US through a digital platform using Gemini Dollar, a stable coin pegged to the US dollar or Ether. The Gemini Dollar is issued by a Cameron and Tyler Winklevoss founded firm. Investors will periodically receive dividends from the recovery of the distressed assets which will be handled by Enforce, a BTG owned company.
Crypto Volatility Stabilized
According to the bank, the investment will not be hedged, so yearly returns are expected to be between 15 to 20 percent. BGT is set to provide market-making services for the tokens in case the investors need to sell.
“BTG is deploying its own capital to provide liquidity because it really believes in the crypto business,” Gustavo Roxo said. “We came up with this structure because we think investors in the digital world have a higher risk-taking appetite.”
The initial offering period is set to last for three months, with the proceeds being reinvested in the distressed assets. The crypto assets will assist the bank to cater to its distressed real estate projects cheaply.
More Banks Joining the Crypto Revolution
A major U.S. bank, JPMorgan &c co last week announced that they had developed a digital coin aimed at speeding up payments between corporate customers; this makes it the first major U.S. bank to introduce its own crypto publicly. Japanese lenders have not been left out on this crypto asset world; they have been working on their own initiative too since as early as 2016. In the meantime, cryptocurrencies have been faltering, a case of bitcoin it was down about 80% from its highs back in December 2017.
Andrew Portilho, a partner with BGT, states that they saw an opportunity with the way bitcoin and other cryptocurrencies were turning too volatile, they saw the need to try something new with these tokens but remain in the game.