Banco BTG Pactual SA is planning to release its .
As reported by Bloomberg on 21st February, the token is dubbed as “ReitBZ” and the investment bank is aiming 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 the investors will receive periodic profits based on the performance of the real estates.
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 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 the real estate, it will not be susceptible to the wild volatility of the crypto market. The Latin American largest bank, according to Bloomberg, is expecting to get annual returns between 15 percent and 20 percent.
Blockchain is the Future of Banks
BTG’s announcement came days after the Wall Street giant . Though the digital tokens of the banks have stark differences, both the banks are finally jumping into the blockchain-backed token’s space.
partner Andre Portilho revealed that the investment bank is 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.
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