By The Blockchain Project Tezos, announced on July 3, 2019, via a press release, that the BTG Pactual, the third biggest investment bank in Latin America alongside Dalma Capital, a Dubai-based asset management firm, has just announced their plans to use the Tezos Blockchain to launch a security token offering. Doing so, the banks hope to “address a deal pipeline in excess of $1 billion for existing and prospective token issuances.” Tezos, a new platform for smart contracts and decentralized applications, was launched back in September 2017. The Tezos Foundation is the non-profit organization behind it. Ever since that the company has made tremendous developments and various partnerships including a partnership with the Yonsei University for Blockchain Talent Development.
Both parties want to utilize Tezos to further enhance their efforts to digitize the financial system. The release states:
“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.”
Last February, BTG Pactual became the first major investment bank that officially launched a Security Token Offering (STO) termed ReiBZ, an ERC-20 token that is backed by the real estate industry of Brazil. The token was launched on the Ethereum platform but will now move on to the Tezos blockchain. Andre Portilho, BTG’s partner responsible for the STO initiative, commented:
“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.”
Zachary Cefariti, CEO of Dalma Capital, commented as well:
“With blockchain technology now becoming a reality globally, we are delighted to be working with the Tezos Foundation and Tocqueville Group teams, whose technical expertise compliments our investment banking and asset management credentials. 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.”
Replacing Ethereum
It can be noted that the announcement highlighted the fact that Tezos, is a “self-amending blockchain” and smart contracts platform. The primary difference between the two is that Tezos is validated by proof-of-stake and has on-chain governance, while Ethereum has a proof-of-work model, off-chain. The later has caused plenty of debates in the crypto community. Tezos, however, has been termed as one of the “Ethereum killer” projects. Arthur Breitman, the start-up’s co-founder, told last year, that his rationale for the Tezos system was to have a “solid, safe ledger,” and this can’t be achieved if there’s only one person in charge.
Tim Draper, CEO, and Founder of Draper Associates and a prominent Tezos stakeholder commented on the matter: “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.”
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