Brazilian Investment Bank to Launch Security Token

Banco BTG Pactual SA is planning to release its own security token, according to a Bloomberg report.

According to the February 21 report, the token is dubbed “ReitBZ,” and the investment bank aims to raise $15 million through an initial coin offering (ICO).

The report also detailed that the bank will back the value of the token with distressed Brazilian real estate assets. So investors will receive periodic profits based on the performance of the real estate.

The bank will keep the investment option open for international investors through a “low-cost, tax-efficient structure.” However, Brazilian and US investors will not be allowed to purchase the token in the initial phase.

Talking to Bloomberg, Gustavo Roxo, the bank’s chief technology officer, said: “BTG is deploying its own capital to provide Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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.”

The bank has partnered with the Winklevoss brothers-backed Gemini platform for the sale of the token. The potential investors can purchase the token using Gemini dollar, a stablecoin issued by Gemini.

As the coin is backed by real estate, it will not be susceptible to the wild volatility of the crypto market. Latin America's largest bank, according to Bloomberg, is expecting to get annual returns between 15 percent and 20 percent.

Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term is the Future of Banks

BTG’s announcement came days after Wall Street giant JP Morgan announced the launch of JPM Coin. Although the digital tokens of the banks have stark differences, both banks are finally jumping into the blockchain-backed token’s space.

The Brazilian bank’s partner Andre Portilho revealed that the investment bank has been exploring and experimenting with the technology for a few years to come up with a solid investment product.

“We thought Bitcoin and other currencies were turning too volatile, but we saw an opportunity with this token to try something new -- but also with our skin in the game,” Portilho said.