Brazilian Banking Giant BTG Pactual Choses Tezos Blockchain Platform For Its Billion-Dollar STO

Brazil’s fifth largest bank - BTG Pactual is planning to launch a massive $1 billion security token offering (STO) on the Tezos Blockchain network. To execute this project, BTG Pactual is teaming up with Dubai-based asset manager Dalma Capital.

Both the companies in partnership said that Tezos’ self-amending blockchain and smart contracts platform will encourage both the companies to step up their digitization efforts.

The official announcement reads: By utilizing the new platform for digital securities transactions, the financial institutions address a deal pipeline in excess of $1bn for existing and prospective token issuances”.

Earlier in February, BTG Pactual became the first global investment bank to launch a tokenised property STO in partnership with ReitBZ, a big giant in the Brazilian real estate industry.

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”.

In the Security Token Offering (STO), Dalma Capital and BTG Pactual plan to utilize their Tezos tokens for different asset tokenization projects from core real estate to major global sports club along with the debt and the equity interest.

The Tezos blockchain platform is emerging as a major smart contracts platform competing against the giant Ethereum. Unlike Ethereum’s proof-of-work, Tezos implements the proof-of-stake consensus model with on-chain governance.

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.”

On the other hand, Dalma Capital CEO Zachary Cefaratti said: "With blockchain technology now becoming a reality globally, we are delighted to be working with the Tezos Foundation and Tocqueville Group teams, whose technical expertise compliments our investment banking and asset management credentials. 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."