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.
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