Banco BTG Pactual Uses Tezos To Launch Security Token

The biggest investment bank in Latin America, Banco BTG Pactual, launched a token on the Tezos blockchain known as ReitBZ. The token is backed by the Brazilian real-estate and has been used with Tezos to purchase 323 units of land as we are reading further in the Tezos news.

ReitBZ was launched on Ethereum back in 2019 so the Banco BTG Pactual decided to deploy the token on the Tezos blockchain. The bank will use the token for future security token offerings which are similar to the land-backed ReitBZ. The partner at the bank Andre Portilho said that he believes Tezos is robust enough to handle the kind of complex STOs that the bank aims to execute:

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.

 “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 announced back in 2019 but the bank’s first use of the Tezos blockchain happened when they purchased 238 units of the real estate later that year. More land purchases followed and now the bank plans to launch a secondary market for the token in the hope of getting more liquidity. Tezos is a delegated proof of stake blockchain that is capable of running a smart contract and Dapps.

The project previously got a lot of criticism for the lack of utility that came after the fact that 93% of all XTZ tokens are staked on its network. In the PoS model of governance, users lock up to XTZ to secure the network that is rewarded with new tokens that are relative to the amount staked. The higher number of tokens staked on Tezos could be a sign of a strong network or an indication that the token is not used for much else. The successful deployment of the Tezos blockchain by the largest bank in Latin America could dispel these notions.