Brazil’s Banco BTG Pactual Issues Real Estate Tokens on Tezos Blockchain
Banco BTG Pactual is distributing its security tokens mirroring investment in real estate on the Tezos (XTZ) blockchain.
Earlier, the Brazilian bank had distributed its ReitBZ tokens on the Ethereum blockchain, generating $10 million in Ether (ETH) and Gemini Dollars (GUSD).
Andre Portilho, chief of digital assets at BTG Pactual, stated that $5 million worth ReitBZ will be transferred to Tezos, including the recently raised $2.50 million in fiat.
The diversification is carried out by the institution because there is no guarantee as to which blockchain will exist in the years to come.
“We don’t want to be tied to just one blockchain. Because clearly I cannot tell which blockchain blockchain will prevail. <…> We want to have other options, other blockchains that might serve better the pieces of tokenization and issuing tokens that represent real assets.”
With regards to the cost of issuing digital assets instead of conventional paper based process, Portilho acknowledged that digital assets issue is slightly costlier, but offers several advantages in addition to being infinitely scalable i.e., issuing $10 billion worth digital assets will cost more or less the same amount as issuing $10 million worth securities.
BTG Pactual studied the feasibility of working with Securitize, a service provider, but finally decided to get it done on their own as it would be a valuable learning experience (issuing digital securities). As per Portilho, the bank’s final objective is to attain huge number of clients:
“At the end, as a bank, going into digital assets, we want to discover the best technological solution for us to be able to increase potential audience for our products.”
The bank is presently preparing for listing its security tokens on cryptocurrency exchanges that have been established in recent times in Asia, as liquidity remains a big issue.