BTG Pactual, the biggest standalone investment bank in Latin America, is preparing to issue its own security token, as Bloomberg reports. The plan is to have the token available worldwide.
The Brazil-based bank operates in the areas of investment banking, wealth and asset management. The company recorded a revenue of around $1.6 billion in 2017, while the total assets under the bank’s control are estimated at $38 billion.
A blockchain-powered token, called ReitBZ, will be offered by the bank with the aim to raise as much as $15 million in the initial offering, which will last 90 days. The token will be backed by distressed real estate assets in Brazil, the company announced.
“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,” said Gustavo Roxo, the bank’s Chief Technology Officer.
ReitBZ will be available for purchase through Gemini Dollar, a stablecoin pegged to U.S. dollar, or Ether, issued by Gemini Exchange, which is owned by crypto entrepreneurs Cameron and Tyler Winklevoss.
“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,” said Roberto Sallouti, the CEO of BTG Pactual.
The investors who become owners of ReitBZ will then receive “periodical dividends from the recovery of the distressed assets”. The bank estimates annual returns in the region of 15 l to 20 percent.