Banco BTG Pactual, the largest private investment bank in Latin America is issuing some of its real-estate backed security tokens on Tezos blockchain.
Previously, the bank had issued its ReitBZ tokens on the Ethereum blockchain while raising $10 million in Ether and Gemini Dollars.
Largest Private Investment Bank in Latin America Issues Real Estate Tokens on #Tezos Banco BTG Pactual, the largest private investment bank in Latin America is moving some of its real estate-backed security tokens over to the Tezos blockchain.https://t.co/8xHpsDyjLG — Tezos Announcements (@tezosbulletin) May 19, 2020
Andre Portilho, head of digital assets at BTG Pactual, says that that $5 million worth of ReitBZ will be switched to Tezos, including the $2.5 million new raise conducted in fiat.
The reason behind this diversification is that the bank wants to have its options open:
“We don’t want to be tied to just one blockchain. Because clearly I cannot tell which blockchain blockchain will prevail. <…> We want to have other options, other blockchains that might serve better the pieces of tokenization and issuing tokens that represent real assets.”
Comparing the cost of the digital asset issuance versus the traditional paper approach, Portilho noted that the former might have turned out to be a little bit more expensive, but provides certain advantages and infinite scalability.
According to him, issuing $10 billion worth of securities will cost roughly the same as $10 million.
Portilho says the bank’s ultimate goal in the undertaking is to reach the maximum potential clientele:
“At the end, as a bank, going into digital assets, we want to discover the best technological solution for us to be able to increase potential audience for our products.”
The bank is currently working on listing its security tokens on some newer up and coming exchanges in Asia, as liquidity for this type of digital assets remains its Achilles heel.
Source: Cointelegraph | Image: Unsplash