Brazilian Bank Aims to Raise $15 Million Through Security Token Offering

A Brazilian investment bank is planning to raise millions of dollars through the offering of a security token.

In an announcement Thursday, Banco BTG Pactual said it will back its blockchain-based token with distressed Brazilian real estate assets, with the expectation of raising up to $15 million.

The offering will allow investors to invest in the Brazilian real estate market and, based on the performance of the tied assets, receive periodic profits.

International investors will be able to purchase the token, called ReitBZ, through a "Low-cost, tax-efficient structure," said the bank.

The token's portfolio will comprise town properties in the states of Rio de Janeiro and Sao Paulo.

The bank aims to include properties that have been "Impacted" by the economic recession in Brazil and now offer "Potentially significant economic upside," according to the announcement.

The bank said it will comply with applicable anti-money laundering and know your customer requirements.

Residents of Brazil, the U.S. and possibly other countries will not be able to invest through the offering.

The token was developed in-house and is moving to real-world trials in coming months.

JPM Coin will initially run on top of Quorum, the private version of ethereum the bank developed in conjunction with EthLab, but could later extended to other blockchain networks, the bank said at the time.