BTG Pactual to Launch $1 Billion STO on Tezos Blockchain

Banco BTG Pactual, one of the largest investment banks in Brazil, on Wednesday announced its plans to launch a security token offering (STO) using the Tezos Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term.

The Brazilian bank also teamed up with Dubai-based asset manager Dalma Capital to carry out the token offering, with which it aims to raise $1 billion.

“By utilizing the new platform for digital securities transactions, the financial institutions address a deal pipeline in excess of $1bn for existing and prospective token issuances,” the announcement stated.

Ethereum to Tezos

The offering will also include the ongoing sale of ReitBZ token, a tokenized property offering, which was commenced in February. Originally, the STO was launched on Ethereum’s blockchain; however, now the bank is planning to move it to Tezos.

The announcement also revealed that the token offering of ReitBZ has already surpassed its soft cap and aims to raise a total of $15 million.

Commenting on the initiative, Andre Portilho, BTG's Partner in charge of the STO, said: “While the bank remains protocol and technology agnostic, and will continue to utilize the Ethereum protocol, we see Tezos as a global player with a robust blockchain for asset tokenization.”

Under the partnership, Dalma Capital will be responsible to further utilize Tezos for a number of expected asset tokenization projects ranging from core real estate to prominent global sports clubs, including equity and debt interests.

“With blockchain technology now becoming a reality globally, we are delighted to be working with the Tezos Foundation and Tocqueville Group teams, whose technical expertise complements our investment banking and asset management credentials,” Zachary Cefaratti, CEO of Dalma Capital, said.

The Sao Paulo-headquartered bank is not the only bank to dive into tokenization. Goldman Sachs CEO recently revealed that the bank is planning to bet on the securitization and Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term, and might introduce a digital currency in the future.

“The addressable market for security tokenization is in excess of $268 trillion, which is composed of the global stock of investable financial assets. This is the next iterative step in the pervasion of blockchain in finance, we see future development in addressing the $595 trillion global derivatives market on blockchain,” Cefaratti added.