Blockchain Bank issues NFT as security

October 1, 2021

Investment bank and crypto specialist Entoro Capital of Houston has tapped private equity firm Valhil Capital to create an NFT sold as a security, according to marketing documents.

The offering is set to only be available to accredited investors. Valhil Capital, led by Jimmy Vallee, is underwriting the sale, while Entoro is serving as the broker-dealer.  The plan is to commission Cuban-American artist Rolando Diaz to create a live painting at an Oct. 8 VIP dinner during the Texas Blockchain Summit. Entoro plans to raffle off nine of the 10 minted NFTs based on the painting while Diaz creates the artwork.

Purchasers of the minted NFTs will be subject to a lockup period of one year. After that, they can be sold on the secondary market.

Diaz’s original artwork will be called “Sailing to the Moon,” while the NFT version will be known as “Buen Viaje,” meaning “good trip” or “good voyage.” The issuers plan to offer animated versions of the artwork as part of the NFT package. The painting will also be live-streamed on Youtube.

There’s been plenty of demand for such an offering, according to marketing materials prepared for accredited investors.

“Blockchain-enabled digital art NFTs have exploded in adoption and value in 2021,” the materials state. “The market for high-dollar digital collectibles is especially popular. However, prior to this event, there has never been a tokenized piece of art created live that embodied additional rights to receive follow-on NFTs of high-resolution 3D digital animations derived from the original work, to our knowledge.”

Entoro is run by Houston-based James Row. Josh Lawler of law firm Zuber Lawler advised on the deal.

The Texas Blockchain Summit takes place in Austin and features notable attendees, including Sen. Cynthia Lummis (R-WY) and Sen. Ted Cruz (R-Tx.)