Brazilian Bank to Issue Security Token

Gerry Brady March 1, 2019 9 No Comments

A Brazilian investment bank has announced its intention to raise millions of dollars via the issuance of a security token. The token is to be called ReitBZ (RBZ).

Banco BTG Pactual said it will back its blockchain-based token with distressed Brazilian real estate assets, with the expectation of raising up to $15 million. It will also establish a secondary market following the sale in order to provide liquidity to the tokens.

Investors from anywhere on the planet will be able to invest in the Brazilian real estate market.  They may also be able to share in any trading profits or capital profits attached to the real estate contained in the offering.

Is this the future of Real Estate?

For the issuance, BTG Pactual is partnering with the famous Winklevoss Twins.  They are co-founders of the Gemini Trust Company to utilize its regulated U.S.-dollar backed stablecoin, the Gemini dollar, to receive investment capital.  Dividends are planned to be distributed via the ethereum blockchain.

“The tokenization of real assets is a major step forward in the evolution of the crypto economy.  Tyler Winklevoss was reported as saying — “working with BTG Pactual to leverage the Gemini dollar as the stablecoin for ReitBZ helps move the industry in the right direction”.

The token’s portfolio will comprise town properties in the states of Rio de Janeiro and Sao Paulo. Clearly, these properties were previously owned by borrowers who have defaulted upon their bank loans.

The bank said it will comply with applicable anti-money laundering (AML) and know your customer (KYC) requirements.  Interestingly, residents of Brazil, the U.S. and possibly other countries will not be able to invest through the offering. This is a matter of securities law. Clearly, BTG Pactual will market the properties to investors in those nations through a different channel.

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