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Latin America’s Biggest Investment Bank Partners Gemini to Launch Its Own Security Token

Originally published on: CoinSpeaker
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February 22, 2019

Photo: Ministério de Minas e Energia / Flickr

Photo: Ministério de Minas e Energia / Flickr

Today more and more traditional banking institutions are entering the crypto world with a view to satisfy the growing market demand for new services and offerings.

As it has been revealed the major investment bank in Latin America called Banco BTG Pactual SA also has taken a decision to join the industry and to launch its own blockchain-based security token via a STO which is viewed as a version of an ICO but a more regulated one.

In its STO the bank expects to raise $15 million.

What Is Known about New Token

According to the announcement made by the bank, its security token will be known as ReitBZ and it is said to be backed by the bank and distressed real estate assets in Brazil.

With the help of ReitBZ, the bank is planning to provide international investors with an opportunity to get access to the country’s real estate market paying less that it is presupposed by traditional means of investments.

To carry out its project the bank has entered in a partnership with Gemini, the company established by Cameron and Tyler Winklevoss. Those investors, who want to purchase the token, will need to do it via a digital platform.

It will be allowed to pay for the token using Gemini Dollar, which is a stablecoin pegged to the U.S. dollar, or Ethereum,  one of the major ctyptocurrencies in the world by the market cap.

It is known that investors will get dividends from the recovery of the distressed assets that the token is backed by and this procedure will be handled by Enforce operated by BTG.

According to the statement, investors from all over the world, except of Brazil and U.S. at first, will get a chance to become holders of the new token.

Market-making services for the token will be provided by the bank. Gustavo Roxo, BTG’s chief technology officer, commented their new initiative the following way:

“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.”

Tyler Winklevoss, Gemini CEO, also made his comments:

“The tokenization of real assets is a major step forward in the evolution of the crypto economy. … Working with BTG Pactual to leverage the Gemini dollar as the stablecoin for ReitBZ helps move the industry in the right direction.”

The initial offering period for the perpetual ReitBZ token is planned to last for approximately 90 days. And the bank will allocate its raised funds to reinvest the distressed portfolio.

Banks’ Digital Coins

As we have already mentioned, BTG is not the first bank to develop its own digital assets.

Though the situation on the crypto market still doesn’t look very optimistic, last week JPMorgan Chase & Co. introduced its prototype digital coin.  It is said that the coin will help to increase the speed of transactions between corporate customers.

*Our comprehensive guide will help you to understand the notion of STO, its aims and working principles.

To find out the information about  the latest Security Token Offerings (STOs) follow the link to check Coinspeaker’s STO Calendar

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