INSTITUTIONAL GRADE SECURITY TOKEN OFFERINGS
Better Homes and Gardens: 89% of US investors interested in real estate but only 3% has invested.
Tokenizz has a solution. Current market conditions have spotlighted the need for liquidity and alternative financing structures. Commercial real estate assets are easy to finance, Improve or reposition. For stakeholders of CRE to monetize assets restructure or improve or reposition, access to capital and financing is very difficult and time consuming.
We give investors and equity stakeholders the ability to “tokenizz” or turn their equity capital into a fractionalized, liquid, tradable, leverageable securities.
Security token offerings, known as STO's, can allow the stakeholders to retain control and partial ownership while providing the ability to convert some or all of their equity into liquid tradable tokens offering.
By converting this 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 able to access the cash to put to work elsewhere.
When you tokenizz a property, stakeholders benefit from enhanced liquidity and fast, secure, low-cost transactions. They can rest easy knowing their investments are accessible and tradable with the push of a button.
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 similar to any REIT stock.
World Economic Forum: 10% of global GDP on blockchain by 2027
We give investors and equity stakeholders the ability to turn their equity capital into a fractionalized, liquid, tradable,leverageable security.
The security, an STO or security token offering, can allow the stakeholders to retain control and partial ownership while providing the ability to convert some or all of that equity into a liquid tradable token offering.
By converting this illiquid equity into a tradeable vehicle, we are increasing value of the asset through the creation of the liquidity premium while allowing stakeholders to access the cash to put to work elsewhere.
Determine 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 appropriate blockchain protocol, token configuration, KYC/AML questionnaire, setup token custody solution with a custody provider and choose the right blockchain network for token creation
Create a distribution plan and payment methods for potential investors to purchase the token. The dashboard displays the amount of funds that you have raised in real-time
The most significant benefit that tokenization can bring to real estate and other capital assets is improved levels of liquidity. The “illiquidity tax” has been estimated to be between 20%-30% of the value of the most illiquid assets such as commercial real estate
While stock trading and public market digital infrastructure are largely developed, the private investment markets and other forms of asset trading have seen very little technological or regulatory advancement in the past century.
Real estate is quite simply the largest asset class in the world. HSBC released a report back in July 2017. In it, they calculated that the global RE market was worth $228 trillion. To give some context, the value of all the gold ever mined has been estimated to be around $7.5 trillion.
Despite being the most affluent space in the world, the industry still runs like a rudimentary “pen and paper” business. However, it looks like some of the industry’s biggest pain points can be solved with blockchain integration.
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 due to the labor-intensive and costly listing processes, a lot of real estate investment firms, funds, and trusts omit 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 and settling real estate.
Today, non-accredited investors are largely prohibited from trading and investing in commercial real estate. In fact, 93% of all U.S.-registered commercial real estate is exclusively accessible to only accredited investors1. 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 Shared Economy, Tokenization could lower the barrier 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.
Owing to these improvements, 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 market2.
Through the syndication of investments, real estate crowdfunding lowers the barrier to investment. That, in turn, allows for a more democratic market where everyone – not just accredited and institutional investors – can freely participate in real estate investment. Owing to its democratic nature, real estate crowdfunding resembles tokenized real estate assets. Despite the crowdfunding market being in its infancy, 60,000 investors participated in real estate crowdfunding in 2020.
In tandem with STOs, the popularity of real estate crowdfunding is expected to skyrocket in the next decade. In 2018, the global real estate crowdfunding market was valued at $13,207 million; it is expected to grow at a compound annual growth rate of 58.3% consequently being valued at $868,982 million in 2027.