On May 19, Brazil-based BTG Pactual announced the issuance of its ReitBZ token using the Tezos blockchain. ReitBZ is a security token backed by Brazilian real estate.
BTG Pactual headquarters in Brazil
BTG Pactual is the largest investment bank from Latin America, and is active in Investment Banking, Corporate Lending, Sales & Trading, Wealth Management and Asset Management and has total assets of $34.7 billion. Last year, the bank announced it would use the Tezos blockchain for security token offerings (STOs).
Since issuance, ReitBZ has been utilized to acquire 238 real estate units in August 2019 and an additional 85 real estate units in December 2019. 181 of these units have been sold so far, with the first distribution of profit dividends scheduled for May 2020. BTG Pactual expects to launch a secondary market for ReitBZ in coming months to provide further liquidity to the digital securities.
Generally, real estate investments are reserved for institutional and larger investors. By tokenizing real estate, smaller investors get a chance to buy part of a property with ease.
“We decided to issue ReitBZ in partnership with the Tezos Foundation to test the Tezos blockchain so that we can use the technology to execute more complex future STOs. We are confident that the Tezos solution is technically robust, and this issuance enables us to guarantee more resources to invest in ReitBZ moving forward,” said Andre Portilho, BTG’s Partner responsible for the STO initiative.
“BTG Pactual has been a pioneer in implementing blockchain solutions to tokenize the assets it manages,” said Hubertus Thonhauser, Chairman of the Tezos Foundation Council. “We are thrilled that the firm has chosen to use the Tezos protocol to make this implementation a reality and look forward to BTG’s continued use of Tezos’ cutting-edge technology as it pushes the asset tokenization market towards mass adoption.”
Tezos is an open-source blockchain protocol and is known for its on-chain governance model, proof-of-stake consensus, and the ability to formally verify smart contracts. Most recently, the Association of Chartered Certified Accountants (ACCA) announced it was exploring Tezos for accounting operations.
Tezos is fully decentralized and it is the role of the Tezos Foundation, a Swiss non-profit to support the development and long-term success of the protocol and ecosystem.
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