Brazilian investment bank BTG Pactual SA and Dalma Capital, a Dubai-based alternative investment fund, have committed to issuing over $1 billion in security tokens.
The initiative, based on the Tezos blockchain, aims to "tokenize a wide variety of traditional and alternative investments," like property, sports clubs, and both equity and debt interests.
It won’t be the first time the Brazilian bank has dabbled in tokenisation. In February, it announced its plan to issue a security token backed by Brazil’s distressed real estate assets, whose offering has since gone live and will be included in the new billion-dollar deal.
“It is our job not only to understand how new technologies can change the market, but also and foremost lead the process," the BTG partner in charge of the token initiative, Andre Portilho, told Bloomberg.
Portilho added the bank is now assessing the myriad ways tokenisation could disrupt capital markets, whose infrastructure he says is rooted in the “analog, local world.”