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https://www.21cryptos.com/latin-americas-biggest-bank-to-release-security-token/

Banco BTG Pactual SA, Latin America’s largest investment bank, are planning on releasing their own security token, named ReitBZ. The Brazil-based bank is aiming to raise $15 million through an initial coin offering (ICO). The bank will back the value of the token with distressed Brazilian real estate assets, investors will receive periodic profits based on real estate performance.

ReitBZ  is the first security token backed by Brazilian real estate and managed by a large and established investment bank. Real estate in Brazil has had a difficult few years after a period of economic downturn but is reportedly now a “flourishing market” and the best time to invest in it is now.  Research has shown that approximately 12,000 residences were sold in the city of Sao Paulo in the first half of 2018 – an increase in sales of 52% as against the first half of 2017 and is the best period for property sales since the country’s economic crisis began in 2013.

The token will enable the bank to offer its real estate business to global investors at reduced costs, something it was unable to do traditionally.

Roberto Sallouti, CEO and member of the Board of Directors of BTG Pactual, said: “The technology associated with this offering allows us to be a pioneer in providing access to asset classes that have historically been difficult for global retail investors to access. We are constantly exploring innovative ways to promote, democratize and encourage the development of financial and capital markets”.€�

Investors will be able to buy ReitBZ via a special platform by using the Gemini Dollar (GUSD) stablecoin or Ethereum (ETH). Investors will “receive periodical dividends from the recovery of the distressed assets, which will be handled by a BTG-owned company called Enforce”. The investments will not be hedged.

With the rise of cryptocurrency and blockchain technology, banks across the world are adapting and adopting. Japanese banking giant Mizuho Financial Group, will also launch its own digital currency service, a new cashless payment system, known as J-Coin Pay on March 1.You can read the ReitBZ white paper here.


Is this the start of banks creating tokens?   ICO  :-X

Not basically different from the bank system. You can do the same with your bank. Invest in a public fund in the real estate and get a profit monthly...
Instead "to lend money" in something and calling it investing in an ICO to make it look fancy. (and maybe not even making a profit) I would prefer to rely on public funds.

And they are just riding the hype that cryptocurrencies and ICOs made to make their stale systems look fresh and make the public invest on them. Basically they are just publicly offering one of their investment plans and just took the word ICO with them just to make their scheme appealing to the public and that many would buy in to the said plan. Also, they like to expand globally and offer the said investment plan to other people on different countries, and going ICO is what enables them to do this sans the legal hoops and challenges they might face along the way.

I agree with earlier comments here, this look more like a way to just raise funds under a different name. Seems "blockchain" and "token" is being thrown around commonly these days.

Skimmed through the whitepaper, one benefit they highlight is it would cut the cost associated with acquiring such assets.

What do they mean exactly by "distressed" assets? Does that mean foreclosures and things like that?

It's an interesting thing to see but not a particularly welcome sight. The ICO is just a gimmick so the bank can raise additional capital to gamble on the real estate market and pocket administrative fees for running the fund.

In other words, it's just bankers being bankers. It's probably a sign of things to come.

Hope the ending will not look like the Petro Venezuelan crypto. I didn't understand the idea behind pegging the value to other financial assets. Anyway, this can be considered as a piece of good news.

It's a very good project, and what I like about it is that it has good support. If it is developed in this way, it would be excellent if it did not have any type of control, that is, it is completely decentralized, as it is a token, the supplies should be few to take a lot of value.

very interesting information, but actually this is not something that I just saw is a system similar to the system they run on banks using FIAT currency, which is different is the new concept uses crypto currency.
I hope that indeed some banks will immediately conduct an ICO and create a token so that the crypto currency can become the currency that we keep in a real bank.

this is very useful if we save a lot of assets in the bank. of course security is an important guarantee, with the bank, there will be a security guarantee from the government, so that we can feel more calm

Yeah, it means stuff they weren't able to sell for the price they asked.

So, they found out a very smart way of selling it for tokens, they valued the properties at 15 million and if by a miracle they will sell them for 20 you will have a 33% gain.
But if nobody will buy them (as it's happening right now) you end up with worthless tokens.

From their point of view, a pretty smart move.  ;D



No soup bounty for you!

Exchanging property for bitcoin is never easy, if the bank will help in the process, I think it would be great news. I believe with the help of bank, the process would be much smoother. Are we going to see more and more bitcoin-property deal in the near term?

So this is what the government's after the implementation of Security Token Offerings, what an interesting move by the way. Scammer will really get hard trying to scam anymore since there are securities implemented and common Security Tokens are from banks.

fascinating, I just hope it's exactly what it is painted as. If it is,  I guess they are not the first to set up something like this considering the fact that Japanese will be releasing theirs this March but it's interesting that something like this is coming from non Asia.
Looking at it from another angle, I feel they are using the 'ICO'  there to attract investors.

Even the cryptocurrency launched by the governments were faked, so just because a centralized bank issuing security tokens doesn't provide with the promise of growth. Recent ico related issue was with Iranian gold backed currency with fake statement and Venezuela petrol reaching billions in supply.

It is not a security token if they are launching an ICO, which is meant for utility tokens. They would be doing an equity distribution, or an STO, Security Token Offering.
This would act as a sort of publicity, and I do not think there is any negative to the report. Also I do not think it would have much of an impact as at yet, as more industries and sectors adopt cryptocurrency, we could haveass adoption.

The adoption rate for CRYPTO is on the increase, when there project become successful sure it will have a positive impact in the CRYPTO community, Also a sign that ETH will rise in price base on continuous demand as a token used to invest into new ICO.

I don't think this tokens has a better future to do with bitcoin community, banks is our main competition in the world of money. Digital currency is widely involved with circulating money around the internet and due to encrypted characteristics, banks can manipulate all things that a naked eye won't see. If that bank generated security token, hopefully that will bring strong and secured asset once it was incorporated towards blockchain network.

If the tokens are really backed by real estate(or by something else),it's pointless to even call them "tokens".
This is just a real estate fund masked as an ICO,only to avoid some Brizillian regulations regarding real estate funds.
Maybe we should call them "digital stocks"...

Probably, security tokens are for those who invested to their bank. If they'll launch an ICO, what's the purpose of having security, i mean they're just trying to collect some profit and use the advantages of crypto. Also, there's a lot of bank-related ICO that goes nothing, I mean it's really hard to trust since there's a lot of failures according to some articles, even the debit/atm card that can withdraw btc.

https://www.cryptoglobe.com/latest/2019/01/crypto-banking-startup-hush-goes-silent-after-failed-ico/

read that.

Besides that, if investors end up losing everything, they will blame cryptocurrencies instead of blaming the bank. Before investing in this, people should question why such a big bank is offering these assets this way rather than doing in the traditional way.

Now it seems for me shady, so I am going to wait a bit more in order to see future development of this approach.
Up to date we don't have any security token although there are rumors about STO

I just feel they are look for a good avenue to raise money. I read somewhere where one of the partners mentioned that they have seen more need to dominate the technology and that they also thought bitcoin and other currencies were turning too volatile so they are using the opportunity to introduce their own coin but personally I think if it’s not bitcoin, it can never be like it and this project is not likely to go far.

I think things are getting out of hand. Each company, bank or institution is issuing its own crypto money. I don't think this is a benefit to the community. These banks abuse the system for the sake of making money.

It’s not  in their plan to help exchange property for bitcoin, they only want to have their own coin which isn’t bitcoin but I personally think it’s not such a project with great prospects.

Capitalizing on the volatility of bitcoin is even their number one failure if am asked. Bitcoin has come a long way and for one bank to just come out to expect massive adoption at introduction is really impossible. Just my opinion.