Tezos foundation in a press release on July 3rd announced that BTG Pactual, the third biggest investment bank in Latin America, and the Dubai-based asset manager Dalma Capital plan to use the Tezos blockchain to launch security token offerings. By utilizing Tezos’ platform for digital securities transactions, they hope to address a deal pipeline of $1 billion. In order to tokenize a wide variety of investments, both traditional and alternative methods for existing and prospective token issuances.
Earlier this year in February, BTG Pactual was the first major investment bank to officially launch a Security Token Offering (STO) in a partnership with ReiBZ. This real estate backed token, which was earlier launched on Ethereum’s protocol is to be migrated on to Tezos’ protocol according to this announcement.
“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,” said Andre Portilho, the BTG’s Partner responsible for the STO initiative.
Dalma capital has partnered with REITBIZ as a joint bookrunner and closely working with BTG Pactual on their pipeline to tokenize projects like global sports clubs and real estate. Especially since they’ve been leaders in implementing blockchain in traditional investments and asset management according to Hubertus Thonhauser, a principal of the Tezos Foundation.
While both Ethereum and Tezos offer smart contracts, Tezos uses proof of stake to maintain on chain governance as opposed to the off chain governance that comes with Ethereum’s proof of work. This offers more scalability for investment banks to develop upon due to faster processing speeds.
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.”
This news caused a spike in XTZ from $1.02 to $1.29 and has settled back to around $1.23 as of today.
As governments worldwide and in the Middle East take measures to introduce digitization initiatives across industries, blockchain spending globally is to reach $2.9 billion this year, and $307 million in MEA region by 2021. 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.