Brazilian Distressed Real-Estate Market up for grabs
BTG Pactual utilizing Blockchain Ethereum will issue a Security Token Offering
BTG Pactual Latin America’s largest investment bank, and its fully owned subsidiary Enforce, a leading manager of distressed Brazilian assets launched “ReitBZ (RBZ),” a security token that will grant purchasers access to the distressed real estate market in Brazil, through blockchain-based technology.
The security token offering allows purchasers from several countries that allow cryptocurrency investments to acquire tokens that will represent an investment in Brazilian distressed real estate properties through a low-cost, tax-efficient structure.
“The technology associated with this offering allows us to be a pioneer in providing access to assets classes that have historically been difficult for global retail investors to access,” said Roberto Sallouti, CEO of BTG Pactual. “We are constantly exploring innovative ways to promote, democratize and encourage the development of financial and capital markets.”
ReitBZ’s portfolio will be comprised of urban properties located in the states of Rio de Janeiro and São Paulo. Target properties are those that have been impacted by Brazil’s recent economic recession and now offer potentially significant economic upside.
The security token offering allows individuals to invest in the Brazilian real estate 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,” said 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.”
BTG Pactual in its whitepaper discusses the usage o Ethereum Blockchain platform for its STO offering utilizing smart Contracts.
Payments for the STO can be made through Ethereum or stableCoins. BTG Pactual is also collaborating with Gemini Trust Company, LLC (Gemini) to utilize the Gemini dollar, a regulated, U.S. dollar-backed stablecoin, to both receive investment capital and distribute dividends via the Ethereum blockchain.
“The tokenization of real assets is a major step forward in the evolution of the crypto economy. We’re proud to have created the Gemini dollar to enable eligible investors to access institutional products on the blockchain without the price volatility associated with traditional cryptocurrency. Working with BTG Pactual to leverage the Gemini dollar as the stablecoin for ReitBZ helps move the industry in the right direction,” said Tyler Winklevoss, CEO of Gemini.
Portilho added, “Gemini was the preferred choice of stablecoin issuers given its highly regulated and compliant approach to the market, combined with the creditworthiness and price stability of the U.S. dollar.”
BTG Pactual plans to raise up to US$15 million through ReitBZ and will establish a secondary market following the security token offering in order to provide liquidity to the tokens. Eligibility criteria will ensure compliance with the applicable anti-money laundering (AML) and know your customer (KYC) regulatory requirements. the whitepaper is available on the www.reitbz.io website.