An investment bank in Brazil takes the STO path to raise funds to its major operations on this market of real estate.
Banco BTG Pactual announced this week it will tie its tokens to the depressed Brazilian real estate assets. Thus the bank intends to raise up to $15 million and plans to open up a secondary market to provide liquidity to the tokens.
The STO will allow investors to invest in the Brazilian real estate market and to receive regular payouts.
International investors will be able to purchase the token, called ReitBZ (RBZ).
Roberto Sallouti, BTG Pactual CEO:
“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.”
BTG Pactual partners with Gemini Trust Company funded by the famous Winklevoss twins, to use their Gemini dollar, the US regulated stablevoin, in order to receive investments and to and distribute dividends. The bank plans to operate over the ethereum blockchain.
“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,” said Gemini CEO Tyler Winklevoss.
The token’s portfolio targets town properties in the states of Rio de Janeiro and Sao Paulo. Here the real estate market has suffered the economic recession in Brazil, hence prices and liquidity are currently low, but there are signs of “potentially significant economic upside,” according to the bank’s announcement.
The platform will comply with anti-money laundering (AML) and know your customer (KYC) regulatory requirements. The residents of Brazil, the U.S. and possibly other countries will not be able to invest through the STO.