In a recent announcement on Thursday, BTG Pactual said it is planning to raise around 15 millions of dollars through the offering of a security token. BTG Pactual is a Brazilian financial company that operates in the markets of investment banking, wealth management and asset management.
The ReitBZ Token
The firm will reportedly back its blockchain-based token with the distressed Brazilian real estate assets. It will also establish a secondary market following the sale in order to provide liquidity to the tokens. The security offering will allow the investors to invest in the Brazilian real estate market and further based on the performance of the tied assets, the investors will receive periodic profits. According to the bank, the International investors will also be able to participate and purchase the token, called ReitBZ (RBZ), through a “low-cost, tax-efficient structure.
The token’s portfolio will comprise town properties in the states of Rio de Janeiro and Sao Paulo. The bank initially aims to include the properties that have been severely impacted by the economic recession in Brazil and can now offer potentially significant economic upside.
For the smooth functioning of its sale, BTG Pactual is partnering with the Winklevoss-founded Gemini Trust Company, LLC (Gemini) in order to utilize its regulated U.S.-dollar backed stablecoin, the Gemini dollar, to receive investment capital and distribute dividends over the ethereum blockchain.
The bank will comply with all necessary and applicable anti-money laundering (AML) and know your customer (KYC) requirements. Residents of Brazil, the U.S. and possibly other countries will not be able to invest through the offering.
BTG Pactual CEO, Roberto Sallouti, said “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.”