An investment bank located in Brazil is raising millions of dollars via a security token offering, as reported by CoinDesk.
According to the report, Banco BTG Pactual said in an announcement on Thursday (Feb. 21) that the offering will be backed with distressed Brazilian real estate assets. The firm is aiming to raise $15 million in the offering. BTG Pactual also plans to create a secondary market following the sale of the tokens to provide liquidity for the digital coins, noted the newswire. The offering will enable investors to get into the Brazilian real estate market, with international investors also having access to purchase the token, called ReitBZ (RBZ).
“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 BTG Pactual CEO Roberto Sallouti, reported CoinDesk.
BTG Pactual is partnering with Gemini Trust Company to launch the offering, utilizing the company's regulated stablecoin, the U.S.-backed Gemini dollar, to get the investment capital and distribute dividends via the ethereum blockchain.
Gemini CEO Tyler Winklevoss told CoinDesk that "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 token's real estate portfolio will be made up of town properties in Rio de Janeiro and Sao Paulo, with the bank aiming to include properties that have been hit by the economic recession in the country but also offer “potentially significant economic upside,” reported the newswire, citing the company's announcement.