Less than a week after the news of J.P.Morgan Chase embracing cryptocurrency, another bank has announced the launch of their own token, Bloomberg writes. Brazil’s BTG Pactual is gearing up to launch a security token with an initial offering expected to raise $15 million.
The token, called ReitBZ, will be backed by Brazil’s distressed real estate assets. Following the purchase, a bank-owned asset manager Enforce will provide investors with regular dividends from the assets. BTG expects these returns to average between 15 per cent and 20 per cent on a yearly basis and has decided to deploy their own capital to provide liquidity for the token.
“We came up with this structure because we think investors in the digital world have a higher risk-taking appetite,” said Gustavo Roxo, the bank’s chief technology officer. BTG plans to re-invest any proceeds made from the token back into the real estate business.