INSTITUTIONAL GRADE SECURITY TOKEN OFFERINGS
Capitalize or re-capitalize your assets using Security Tokens. Security Tokens are not cryptocurrency. They are SEC regulated securities backed by real assets being actively worked to produce income. However, they are "Smart Securities" that are built on blockchain, making them "Programmable". If you are interested in the advantage of converting your capital or funding your project using programmable smart securities please let us know.
Today, non-accredited investors are largely prohibited from trading and investing in commercial real estate (CRE). In fact, 93% of all U.S. registered commercial real estate is exclusively accessible to only accredited investors. Due to excessive capital requirements, the great majority of people in the U.S. and the world are thus excluded from investing in real estate.
To bring CRE into the Shared Economy, tokenization could lower the barriers to investment and thus open the market to non-accredited investors. Tokenization of CRE assets could significantly reduce transaction and administration costs while enabling the fractionalization of real estate securities.
Tokenization has the potential to lower capital requirements for real estate investment, which in turn could democratize real estate investment and consequently result in trillions of dollars entering the market.
Through the syndication of fractionalized Capital assets and alternative investments, crowdfunding lowers the barriers to investment. That, in turn, allows for a more democratic market where everyone, not just accredited and institutional investors, can freely participate. Despite the crowdfund style investing market being in its infancy, 60,000 investors participated in real estate crowdfunding in 2020.
In tandem with STOs, the popularity of real estate and alternatives crowdfunding is expected to skyrocket in the next decade.
|Per subscription agreement and voting share by percentage||Per set PPM terms tokens have no voting rights or non-voting fractions|
|6-12 months plus 1 year lock up||Tokens may be traded (i.e., sold or purchased) in whole or fractionalized shares on one or more alternative trading systems after the required SEC 6-month and one day holding period. Multiple large Institutions and banks are entering the space offering loans against the tokens value.|
|Audited financials||No audited financials or any specific requirements on disclosure under Reg D 506(c)|
Security Token Market
|One of the main trends in the security token market is tokenized assets. KPMG and WEF project that the security token market will grow to $8 trillion by 2025. The German digital asset platform for institutional investors, Finoa, predicts that the global security token market will have $9.5 trillion in assets under management by 2025.|
Owners and Stakeholders
|Allows owners and stakeholders to access “locked up” equitys, creating liquidity and increasing in asset value through the creation of tradable securities representing fractions of the interest (The liquidity premium). IPO Cost/Time.|
|Accredited Investors can invest in fractional portions of properties while avoiding multi year lock ups associated with most CRE investments. The first funds in pre-IPO can take advantage of increased value through liquidity after the STO becomes tradable to retail investors. The IRR of a real estate deal (or any deal) increases when the asset is refinanced or sold and the proceeds are distributed to investors, usually many years after investment lockup, We can Calculate IRR at 6 and 12 month increments.|
|Retail investors benefit from enhanced liquidity and fast, secure, low-cost transactions, so they can rest easy knowing their investments are accessible and tradable with the push of a button. They can and sell shares in exchange for fiat or cryptocurrency as well as access fractional trading of business equity and cashflow through digital platforms utilizing Fiat or Crypto|
Investors receive security and traceability of capital assets through SEC/FCA registered security tokens.
Access to a global market of investor, immediately creates value, and increases diversification.
The ability to fractionalize and democratize commercial assets opens up immediate trading and liquidity.
A sound legal blockchain-based structure is able to eliminate many documents that require signature, notarization, submission and approval. Public-key cryptography is able to automate the signature process.
Only 1% of the world’s real estate assets are traded on national stock exchanges. The illiquid quality of real estate assets can partly be ascribed to a lack of public markets and partly to a difficulty of transacting.
Getting listed on public exchanges can be time-consuming and expensive. It can take more than 2 years of planning for real estate investment trusts (REITs) to get listed on public exchanges while costing 3% to 10% of the market value of the trust’s assets resulting from the labor-intensive and costly listing processes. Lot of real estate investment firms, funds, and trusts avoid the public market therefore a great majority of real estate deals are carried out in private markets.
Privately settled real estate deals require the involvement of several parties and demand a lot of manual paperwork. Consequently, real estate transactions are usually expensive and cumbersome. KPMG states that real estate transactions can take anywhere from 6 months to 2 years, and that transaction fees usually range from 1% to 3% of the asset value. Tokenization of real estate assets provides a solution to the liquidity issues afflicting real estate markets by providing cost-effective secondary markets for matching buyers with sellers.
Companies that pursue a Regulation A+ offering are required to file an offering statement on Form 1-A with the SEC, which includes the offering circular and other disclosure about the offering, as well as two years of audited financial statements. Companies relying on Tier 1 do not have ongoing reporting obligations other than a final report on the status of the offering. Companies relying on Tier 2 do have ongoing reporting obligations, including annual, semi-annual, current, and exit reports.
After 90 days, the shares can be resold among accredited investors. The shares are able to be freely resold following a 1-year lockup to retail and accredited investors.
Fractionalization makes assets more divestible and tradeable. Fractionalization extends beyond equities to assets, such as real estate, funds, art, film, and more, fundamentally changing how we invest in these assets. It opens up access to illiquid assets that were previously reserved for the wealthy, ultimately expanding the opportunity to own.
Tokenization is a process that utilizes innovative technology to add a digital element to a security. This can be in the form of immutable ownership records visible on a blockchain, which is permissible today, or by creating a security solely issued on a blockchain with built-in rules known as a smart contract that governs all aspects of the blockchain.
Identify the specific property or properties to tokenize and consider jurisdiction, types of shareholders, and the relevant regulations.
Determine the legal structure. Various options are available and the owner can choose to tokenizz the equity of a special purpose vehicle (SPV), a debenture, or another form of participation right such as revenue or profit.
choose the, Blockchain protocol, Token configuration, and complete the KYC/AML questionnaire, Setup the Token custody solution with a custody provider and choose the right block chain network for token creation.
Create a distribution plan and payment method for potential investors to purchase the token. The dashboard displays the amount of funds that you have raised in real-time.
Security tokens are digital financial securities, backed By tangible, commercial real estate, or other capital assets.
Security tokens are fully compliant with KYC / AML requirements, and SEC regulations, utilizing blockchain transparency.
Security tokens can be traded like any REIT stock is currently.
World Economic Forum: 10% Of global GDP on blockchain by 2027
A security token offering, known as an STO, can allow the stakeholders to retain control and partial ownership while providing the ability to convert some or all of their equity into a liquid tradable token offering.
Security tokens are fully compliant with KYC/AML requirements and SEC regulations utilizing Block Chain Transparency.
By converting illiquid equity into a tradeable vehicle, we are increasing the value of the asset through the creation of the liquidity premium.
Stakeholders are protected by tangible property, and are able to access cash as needed for additional improvements.
The most significant benefit that tokenization can bring to real estate and other capital assets is improved levels of liquidity. This “illiquidity tax” has been estimated to be between 20%-30% of the value of the most illiquid assets.
When you tokenizz your property, stakeholders benefit from enhanced liquidity and fast, secure, low-cost transactions, so they can rest easy knowing their investments are accessible and tradable with the push of a button.
Our experienced marketing team has the marketing ability and access to a group of known accredited investors and international investors numbering in the hundreds of thousands. Our combined ability to access and market to known investors worldwide is a strategic advantage.
Our forward-looking approach to assessing and onboarding quality opportunistic capital assets, while simultaneously providing the ability to market-make for our offerings through our own marketing platform provide us sustainability and success in this fast growing market.
Our partner Dunhill Ventures Holding events weekly “Family Office Round Table pitching” To over 100 family office UHNW representatives This will be simulcast by into our deal metaverse and broker dealer sales teams in US and Europe will work to close out the round.
Create Ethereum smart contracts + unit testing
Create administration dashboard with Ethereum wallet (Metamask) operability
Grant Issuer control of smart contracts and ability to administer and manage Cap Table, Controller Access (Token Recovery Process), Issue / Redemption, Share Class Management, Permission Management W/ Multiple Agents, Stakeholder Identity Management, Batch Functions
Investor gains interest in the Operating Partnership
Investor can view account balance in their Investor Portal account
GP begins exchange (ATS) integrations for digital security functionality
File Form 10 with the SEC
Investors may exchange OP Units in the Operating Partnership for digital shares of the SPV via DocuSign in their Investor Portal account
Digital shares are sent to custodian and are held in custody only during the holding period
Complete ATS integrations for digital security functionality
Upon the end of holding period, digital securities auto-send to investors' individual Ethereum wallets, or are continually held in custody if the investor chooses and agrees to the custodial fees
Holders of digital securities (Tokens) may transfer their securities from their Ethereum wallet Or custodial account to the ATS of their choice to trade the securities
Digital tokens that exchange peer-to-peer with instant-settling provide a strong alternative to the slow exchange of real estate properties. Reducing the 30-day average exchange period, to the 12 second block time on Ethereum, is a revolutionary improvement in the sale of real estate.
With ownership of the property represented by ownership of the token, the cost of exchange is reduced to the price of gas, that is, the internal pricing on the blockchain for executing the computation that effects a transaction.
A sound legal, blockchain-based structure is able to eliminate many documents that require signatures, notarization, submission and approval. Public-key cryptography is able to automate the signature process, and if the legal structure for providing ownership to the token is sound, then there are no further steps required for the exchange of the asset, enabling the transaction itself to represent the exchange of the asset.