Largest Investment Bank in Latin America Used Tezos To Launch A Security Token

The largest investment bank in Latin America, Banco BTG Pactual, has launched a token on the Tezos (XTZ) blockchain. Known as ReitBZ, the security token is backed by Brazillian real-estate and has already been used with Tezos to buy 323 units of land.

ReitBZ – From Ethereum to Tezos

ReitBZ was originally launched on Ethereum in 2019. BTG Pactual’s decision to deploy the token on the Tezos blockchain marks a first in its history. The bank will use the token for future security token offerings (STOs), similar to the land-backed ReitBZ.

Partner at BTG, Andre Portilho said he believed Tezos was “robust” enough to handle the kind of complex STOs the bank hopes to execute. He said:

“We decided to issue ReitBZ in partnership with the Tezos Foundation to test the Tezos blockchain so that we can use the technology to execute more complex future STOs. We are confident that the Tezos solution is technically robust, and this issuance enables us to guarantee more resources to invest in ReitBZ moving forward.”

The partnership between BTG Pactual and Tezos was originally announced in July 2019. The bank’s use of ReitBZ was Tezos’ first real-world test, and it was first used to purchase 238 units of real estate in August of the same year. More land purchases followed, and now BTG Pactual plans to launch a secondary market for the token in the hope of providing more liquidity.

Use Case for Tezos and XTZ?

Tezos is a delegated-Proof-of-Stake (PoS) blockchain capable of running smart contracts and dApps. The project has previously come under criticism for its perceived lack of utility – particularly given the fact that 93% of all XTZ tokens are staked on its network.

In the Tezos’ PoS model of governance, users lock up XTZ to secure the network and are rewarded with newly baked tokens relative to the amount staked. The high number of tokens staked on Tezos could be the sign of a healthy network – or an indication that the token isn’t used for much else.

The successful deployment of Tezos by the largest standalone investment bank in Latin America might go some way to dispelling those notions. Chairman of the Tezos Foundation Council celebrated BTG Pactual’s use of Tezos. He said:

“We are thrilled that the firm has chosen to use the Tezos protocol to make this implementation a reality and look forward to BTG’s continued use of Tezos’ cutting-edge technology as it pushes the asset tokenization market towards mass adoption.”

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Publication date: 
05/19/2020 - 20:48
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