BTG Pactual recently announced the launch of the Brazilian token ReitBZ (RBZ) on the Tezos blockchain. At first, ReitBZ was issued on the Ethereum blockchain in 2019, but is now being traded on the competitor. Future offers of the bank’s security tokens will also be traded on this blockchain. The token is real estate-backed and this is the first issuance outside the Ethereum platform.
The bank justified the blockchain change as a test of the Tezos blockchain and to open up the possibility of executing more complex security tokens on the platform. However, as the bank has switched blockchains to more than US$ 10 million in security tokens, there are speculations for additional reasons for the move.
BTG seeks diversification with the move to Tezos
According to behind-the-scenes information, the main reason for the change was diversification – the bank wants to explore the various blockchain possibilities existing to test its tokens. While blockchain migration involves additional costs, BTG Pactual considers them worthwhile as a form of learning.
The biggest advantage of asset tokenization is infinite scalability. BTG Pactual considers the issuance of digital assets compared to traditional issuance much more scalable. To have an idea, the cost of issuing US$ 10 million would be pretty much the same as the US$ 10 billion.
According to Money Times, BTG Pactual wants to launch a secondary market for the token in order to provide more liquidity to digital securities. Since its issuance, ReitBZ has been used in the acquisition of 238 real estate units in August 2019 and 85 more in December 2019.
Security tokens are assets considered as securities, which give, for example, rights of an institution or company to its holders. And they are seen as the gateway to institutional capital – funds, family offices, etc. – with greater intensity in the cryptoassets segment.
Tezos is a blockchain that aims to enable and promote the creation of projects based on this same technology, such as dApps and Smart Contracts. It is seen by the market as an alternative to the Ethereum blockchain. Unlike the rival, it was not created from any blockchain and seeks to solve the situations that have led to the forks of various projects. Ethereum itself has already gone through a process of the kind, when the blockchain gives rise to a new one after a disagreement between developers.