Tezos Security Offerings STO

BTG Pactual and Dalma Capital to utilize Tezos blockchain for Security Token Offerings (STOs)

Security offerings (STOs) worth $1bn to be launched on Tezos.
  • BTG Pactual the largest Latin American bank has partnered with Dubai-based asset manager Dalma.
  • The partnership will see a number of traditional assets tokenized using the Tezos blockchain and smart contracts platform. 

The biggest investment bank, in the Latin American region, BTG Pactual, are planning to shift their security token offerings (STOs), which equates to a chunky pipeline of over $1 billion in sales, onto the Tezos blockchain.

There will be a partnership between BTG Pactual and Dubai-based asset manager Dalma Capital, who are planning to tokenize a number of traditional assets using the Tezos blockchain and smart contracts platform. 

Details from the official announcement noted that Dalma Capital is planning to leverage the Tezos blockchain for the purpose of digitizing assets in multiple industries, in the likes of; real estate, equity, lending, as well as global sports clubs.

Press release

SAO PAULO, 3 July, 2019– Banco BTG Pactual S.A., Latin America’s largest standalone investment bank, together with Dalma Capital, a prominent Dubai asset manager, announced today plans to utilize the Tezos blockchain for Security Token Offerings (STOs), including the ongoing REITBZ STO. 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 – with an outlook to utilize Tezos to tokenize a wide variety of traditional and alternative investments.

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.

BTG Pactual was the first major investment bank to officially launch a Security Token Offering (STO) when it announced in February its plans to launch ReiBZ. It has since successfully launched and exceeded the soft cap of the real estate backed token on the Ethereum protocol.  “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, BTG’s Partner responsible for the STO initiative. Dalma Capital, which is working with BTG Pactual on their STO pipeline and has partnered as joint-bookrunner for REITBZ, plans to further utilize Tezos for a number of expected asset tokenization projects ranging from core real estate to prominent global sports clubs; including equity and debt interests.

“With blockchain technology now becoming a reality globally, we are delighted to be working with the Tezos Foundation andTocqueville Group teams, whose technical expertise compliments our investment banking and asset management credentials,” said Zachary Cefaratti, CEO of Dalma Capital, “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.”

 “BTG Pactual and Dalma Capital have been leaders in implementing tokenization and blockchain solutions in the realm of traditional investment banking and asset management” commented Hubertus Thonhauser, a principal of the Tezos Foundation, “We are encouraged by forward-thinking investment banks embracing blockchain as the market progresses to institutionalization and mass adoption.”

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.”

Zachary Cefaratti elaborated further, “The addressable market for security tokenization is in excess of $268 trillion**, which is composed of the global stock of investable financial assets. This is the next iterative step in the pervasion of blockchain in finance, we see future development in addressing the $595 trillion*** global derivatives market on blockchain.”

Sources: BTG Pactual, Dalma Capital, Tezos Foundation
*Source: IDC report on Worldwide Blockchain spending
**Sources: IFC, Credit Suisse, PwC and DFI Reports
***Source: Bank for International Settlements

About Dalma Capital – Dalma Capital is a global alternative investment fund accelerator and platform focused on alpha generating strategies with an inherent edge in emerging investment strategies and markets. Dalma’s edge also extends to investment banking opportunities in innovative products including disruptive technologies, blockchain investments and Sukuk. Established in 2011 and headquartered in the Dubai International Finance Centre, Dalma Capital’s goal is to identify the next generation of alpha generating ‘edge’ fund managers, strategies and opportunities. For more information, please visit: Dalma Capital.

About Tezos –  Tezos is a blockchain that evolves by upgrading itself. Stakeholders vote on amendments to the protocol to reach social consensus on proposals, creating a secure and organic upgrading system. The protocol’s on chain governance system, Proof-of-Stake (PoS), and ability to facilitate formal verification, make Tezos an ideal long-term solution for digital transactions, including smart contracts and security token offerings. Tezos is fully decentralized and it is the role of the Tezos Foundation to support the development and long-term success of the protocol and ecosystem. For more information, please visit: Tezos.

About BTG Pactual – BTG Pactual is the largest investment bank in Latin America. It operates in Investment Banking, Corporate Lending, Sales & Trading, Wealth Management and Asset Management. Since its creation in 1983, BTG Pactual has been managed under a meritocratic partnership model. The Bank currently has 2,284 employees. For more information, please visit: BTG Pactual.

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