Banco BTG Pactual SA, Latin America’s largest independent investment bank, has joined the blockchain revolution by announcing that it will launch its own security token in a move that expands cryptocurrency exposure within the region. BTG hopes to raise $15 million through an ICO for their token, ReitBZ, that will be backed by real estate assets in Brazil, according to Gustavo Roxo, the bank’s chief technology officer, in an interview with Bloomberg.
One Small Step for a Bank…
Roxo revealed that the token will be available initially through a 90-day ICO, with contributions only available in GUSD (Gemini Dollar), the stablecoin created by the Winklevoss twins, although no official launch date has yet been given. The bank expects the returns to be in the 15-20% region, with dividends to paid out periodically, and the bank providing liquidity should holders wish to sell. In discussing the new venture, Andre Portilho, BTG’s partner responsible for the initiative, stated that, similarly to JPMorgan who announced their own cryptocurrency last week, they have been investigating the blockchain arena for some time:
We knew we needed to dominate this technology, so we started experimenting with it a few years back. 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.
Generous Returns Offered Thanks to Crypto Volatility
Roxo meanwhile embraced the volatile nature of cryptocurrency and the “higher risk-taking appetite” that those who invest in it have. This is reflected in the annual target, which is higher than many traditional funds of that size, and will hopefully open up the concept of investing in cryptocurrency to both existing investors of more traditional stocks and new investors. This development can count as another win for cryptocurrency, and adds more weight to its desire to be taken seriously in the financial world.
