BTG Pactual, Brazil’s largest standalone investment bank, and fifth largest bank overall revealed Wednesday in a press release that it will use the Tezos blockchain to conduct security token offerings (STOs) worth at least $1 billion.
Per the announcement, BTG Pactual is partnering with Dubai-based asset management firm, Dalma Capital for the project, which will see the Tezos network serve as a platform for the partners to sell digital securities.
The total value of the deals to be sold out using Tezos would be “in excess of $1bn for existing and prospective token issuances.” The partners also look forward to utilizing “Tezos to tokenize a wide variety of traditional and alternative investments.”
Although the release did not provide further details regarding other STOs which the firms plan to pilot on the Tezos blockchain, it mentioned that a $15 million real estate backed STO which the Brazilian banking mogul announced in February would be among those now issued via Tezos, albeit the offering still uses the Ethereum protocol.
Another section of the release shows optimism by the partners that utilizing Tezos, a self-amending blockchain and smart contracts platform will encourage and enhance their digitization efforts, by transacting in digital assets.
Speaking in the release, Zachary Cefaratti, CEO of Dalma Capital said,
"We see Tezos as one of the critical protocols for the burgeoning STO market, and look forward to securing future deal flow on the Tezos blockchain."
The latest deal announced by one of Brazil’s most prominent banking institution coincides with the global increase in the number of regions regulating security token offerings (STOs). Since the start of the year, Stmarket.co has reported that jurisdictions such as Mauritius, the Philipines, Dubai, and Hong Kong released STO regulatory frameworks.