News

Biggest Investment Bank in Latin America to Launch a Cryptocurrency

Banco BTG Pactual SA, the biggest independent investment bank in Latin America is about to launch a cryptocurrency called, ReitBZ. The token will be based on blockchain technology and backed by distressed real assets in Brazil. Moreover, the yearly returns expected is between 15 to 20 percent, reports Bloomberg on February 21.

Investment Bank to Launch a Cryptocurrency

Based on the report, Banco BTG Pactual SA, an investment bank will launch a virtual asset, ReitBZ. Gustavo Roxo, the bank’s CEO revealed that ReitBZ would be based on blockchain and it will be backed by distressed real assets in Brazil. The CEO added that plans had been made to raise $15 million through an initial coin offering (ICO) which will last for 90 days.
During the ICO, ReitBZ can be purchased from a digital platform using Gemini Dollar, a stable coin issued by Tyler and Cameron Winklevoss. ReitBZ will first be purchasable by investors in the United States and Brazil before other countries are incorporated. In the same vein, the expected yearly return is around 15 to 20 percent in Brazilian currency. Investors will also be paid dividends periodically, and it will be overseen by Enforce, a company owned by BTG.

Proceeds from ICO to be Invested in Distressed Portfolio

The bank’s CEO who threw more light on the nature of the virtual asset revealed that the proceeds made during the ICO would be reinvested in the distressed portfolio.  He added that the cryptocurrency would enable the financial institution to provide its distressed real estate business to global investors. This will be in a way that is cheaper in comparison with traditional methods.
Gustavo Roxo also said:

BTG is deploying its own capital to provide liquidity because it really believes in the crypto business..We came up with this structure because we think investors in the digital world have a higher risk-taking appetite.

Andre Portilho, BTG’s partner who came up with the initiative for the virtual asset also made comments. According to Portilho, experiments had begun some years ago because they knew that they would need to dominate this modern technology. He stated that they were aware that bitcoin and other cryptocurrencies were becoming too volatile. Thus, this made them see “an opportunity with this token to try something new — but also with our skin in the game.”

More Banks Adopt Blockchain Technology

Events of this nature reveal that more financial institutions are adopting blockchain technology as well as cryptocurrencies. BTCNN on December 5 had reported that two banks in Latin America, Itaú Unibanco Holding SA and Standard Chartered are trying to develop a blockchain-based platform to issue loans. Likewise, a report on February 15 informed that JP Morgan is now the first U.S. bank to launch its cryptocurrency.

 

Related posts
NewsNews 1RippleSocialTrading ViewXRP

Ripple settles lawsuit with YouTube for 'failing to enforce its own policies'

Ripple is in the news today after CEO Brad Garlinghouse revealed that its lawsuit against YouTube has been resolved, with the exec adding that the two parties have reached a settlement on the subject.The post Ripple settles lawsuit with YouTube…
CoinGapeNews

Ark Investment CEO Says Bitcoin (BTC) Will Resemble Bonds As Part of Balanced Portfolio

Cathie Wood, the CEO of Ark Investments recently said that Bitcoin (BTC) will soon become an integral part of a “balanced portfolio” in addition to stocks and bonds. Furthermore, in a bold statement, Wood added that cryptocurrencies could stabilize very…
BitcoinBitcoin PricecryptocurrencyNews

Bitcoin Reclaims $1 Trillion Market Cap: What’s In Store?

Earlier today, Bitcoin rose to its highest level since late February and regained its $1 trillion market cap. Recently, Bitcoin was unable to break key resistance at $50,000, as it failed to find support over its 50-, 100-, and 200-day…