BTG Pactual, a large South American investment bank, recently launched a successful security token offering for a real estate fund. REITBZ was the first-ever tokenized investment fund in South America.
Until recently BTG Pactual only offered services to high net worth and ultra-high net worth individuals. This changed with the launch of BTG Pactual digital – as well as the STO offering.
REITBZ recently issued all the tokens on Ethereum Blockchain but a second tranche will use the Tezos platform. REITBZ raised $3.3 million from retail investors at the official close but the offering is still available, according to the fund. The fund is now seeking institutional money:
“We have a strong potential pipeline of institutional investors that will be joining the offer in the weeks to come. Target real estate deals have already been mapped out and in the following weeks we expect to deploy cash and start building the portfolio. You will be able to follow the investment process through the Investor Dashboard that will go live in a few days.”
As part of the process, BTG Pactual is said to be using Jumio, an AI-powered trusted identity service provider, to vet identities of investors – an important step in the investment process. Jumio will automate digital onboarding process with face-matching technology and the ability to process Brazilian ID documents. It is not clear if they are using the system for international investors as well but automating KYC makes a lot of sense.
Rogerio Karp, Head of B2C and Products for BTG Pactual digital, stated:
“We have had a fast, friction-free onboarding process since Day 1 thanks to Jumio. Even though some users have tried to trick our onboarding process, with Jumio we are able to identify them before they can cause us any harm.”
Additionally, REITBZ is planning to a secondary market on the platform in the coming weeks, providing liquidity for ReitBZ.
BTG Patual/REITBZ states:
“We believe DLT and crypto technology can transform capital markets from an analog, local environment into a digital, global ecosystem. ReitBZ is just the beginning.”
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