Brazilian investment bank BTG Pactual has entered the cryptocurrency space with a security token offering (STO) designed for the real estate market through blockchain-based technology.
The bank has teamed up with Enforce, a manager of “distressed” Brazilian assets that is controlled by BTG Pactual, to launch the ReitBZ (RBZ) token.
“The technology associated with this offering allows us to be a pioneer in providing access to asset classes that have historically been difficult for global retail investors to access,” says Roberto Sallouti, CEO of BTG Pactual.
According to the bank, the token allows purchasers from several countries to acquire tokens that will represent an investment in Brazilian “distressed” real estate properties.
ReitBZ’s portfolio will be comprised of urban properties located in the states of Rio de Janeiro and Sao Paulo.
The bank says target properties are those that have been impacted by Brazil’s recent economic recession and now offer “potentially significant economic upside”.
Individuals can invest in the market and, based on the performance of the portfolio, receive periodic profit distributions via a blockchain-based token.
“We believe this is an ideal time to invest in the Brazilian real estate sector,” explains André Portilho, one of the partners responsible for the project at BTG Pactual. “In our view, we are in the early stages of price recovery and our investment thesis is supported by the country’s positive economic and regulatory outlook.”
In addition to using blockchain to create the STO, BTG Pactual is working with Gemini to use the Gemini dollar, a regulated, US dollar-backed stablecoin, to both receive investment capital and distribute dividends via the Ethereum blockchain.
BTG Pactual plans to raise up to $15 million through ReitBZ and will establish a secondary market following the STO to provide liquidity to the tokens.
The offering will not be available to investors who are residents of Brazil or the US. Residents of certain other (unnamed) countries may also be precluded from investing.