Brazil’s 5th largest bank and Latin Amerca’s biggest investment bank BTC Pactual plans to launch $1 Billion worth of security tokens on top of the Tezos Blockchain. According to the press release, the bank has partnered with a prominent Dubai based asset manager, Dalma capital to offer a variety of tokenized securities.
The companies wrote:
“Utilizing Tezos, a self-amending blockchain and smart contracts platform will encourage BTG Pactual and Dalma Capital to enhance their digitization efforts, by transacting in digital assets.”
The Brazilian investment bank issued its first security token called Reitbz STO back in February on the Ethereum Blockchain. According to the announcement, the token which is backed by real estate will now be migrated to the Tezos Blockchain along with other token issuances for prominent global sports clubs; including equity and debt interests.
Andre Portilho, BTG’s Partner responsible for the STO initiative said:
“While the bank remains protocol and technology agnostic, and will continue to utilize the Ethereum protocol, we see Tezos as a global player with a robust blockchain for asset tokenization,”
Tim Draper, CEO and Founder of Draper Associates, a prominent Tezos stakeholder and advocate of blockchain in finance said,
“We are excited to see BTG Pactual and Dalma Capital making use of the Tezos blockchain – we are believers in the Tezos project and see a strong use case for security tokens.”
The announcement comes as a big deal due to the sheer size of the operation, it also shows the fierce competition Ethereum is facing as a token issuance platform. While new generation protocols like Tezos have on-chain governance, other protocols claim to be more scalable than Ethereum.
But Ethereum still has significant network effects especially when it comes to developer mind share, but it won’t be smooth sailing for the project in the next bull run as it no longer has a monopoly over token issuance.
Anthony Pompliano, a partner at Morgan Creek claims that “every real-world asset that can be tokenized will eventually be tokenized”. The world is definitely moving towards considering tokenizing many assets such as real estate, debt, securities, etc.
The United States may not be leading on the Blockchain front anymore but it is clearly leading the tokenization movement. According to a recent report by BlockState, around a billion dollars have already been issued in security tokens this year of which more than half came from the US.
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