Tezos (XTZ) Price Rallies on Latin American Banking Partnership
Banco BTG Pactual has chosen the Tezos platform to issue security tokens, in partnership with Dubai’s Dalma Capital.
Banco BTG Pactual and the Dubai-based asset manager, Dalma Capital, have partnered to issue $1 billion’s worth of security tokens. In one of the rare security token events, the two investment firms will choose the Tezos (XTZ) network.
The partners have a list of assets to tokenize in future rounds of token-based financing, reported Bloomberg. BTC Pactual is no stranger to security tokens, having already offered tokenized distressed real estate.
“When we look at capital markets, we notice that even with all of the recent technological advancements, we still have infrastructure that was designed for an analog, local world,’’ said Andre Portilho, director for the BTG Pactual tokenization program.
“It is our job not only to understand how new technologies can change the market, but also and foremost lead the process.’’
The assets offered for tokenization can be any type of real-world asset. Dalma plans to tokenize sports clubs and real estate. BTC Pactual plans to continue with token tranches based on local real estate.
Security token offerings picked up where the ICO trend left. Tokens faced the problem of being considered unregistered securities, so a new series of token sales attempted to comply with security laws. However, the token sales were severely restricted, and in some cases, only available for accredited investors. Security tokens are also trading only on specialized exchanges, and so far, there seems to be no secondary market for those assets.
Still, some firms are choosing the tokenization of assets. Initially, tokens were created on the most widely used network, Ethereum (ETH), but then competitors, such as EOS also called for the issuance of security tokens.
But the choice of Tezos moves away from the mainstream networks. The Tezos network uses delegates and staking to produce blocks, thus allowing for higher speed and efficiency.
Following the partnership news, the price of XTZ rose against the general market trend. XTZ jumped to $1.30, and is up more than 18% this week.