Payouts can be made directly to token holders, with the assurance that they're the correct recipients. Usefully, security tokens can also make it much easier to pay dividends to holders. This can allow seamless trading of security tokens without needing to conduct an endless parade of due diligence on every transaction. For example, you can program a token so that it can't be transferred to any unknown or otherwise ineligible recipients. In this case the minimum investments vary by property and appear to start at US$2,001.ĭistributed ledger security tokens more generally can also reduce a lot of the legal and administrative overhead around securities.Įssentially, they can help automate restrictions and obligations.
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Meanwhile, the initial security sale can reach a wider global audience, and both that and the secondary market offer vastly increased liquidity. By tokenising and fractionalising property, the minimum buy-in can lower much more easily.
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Tokenising commercial real estate helps solve those problems. It considers factors such as aesthetics, location, age and overall quality.īecause commercial real estate, especially high quality offices in places like Austin, Houston, Brooklyn, Oakland and Ontario, are quite inaccessible investments, buried in layers of legal and tax obligations, and with a very high barrier for entry. US$2.2 billion of Class A commercial real estate in Austin, Houston, Brooklyn, Oakland and Ontario, of varying property types including mixed-use and multi-family buildings.Ĭlass A refers to the most attractive type of real estate, in the sense of how much it likely costs. It provides the system that companies like Red Swan can use to compliantly tokenise and sell securities on distributed ledgers, and then enable trading in secondary markets. Polymath: A security token technology provider with an emphasis on simplicity and ease of use.It's a public distributed ledger (blockchain) with an emphasis on speed, scalability and flexibility. Hedera Hashgraph: The network infrastructure for the real estate tokens.These tokens can then be traded on a secondary market, while buyers can view and manage their CME holdings through the platform. It registers properties for sale, prints the relevant tokens, does the compliance legwork and crowd-sells them as a registered security sale. Red Swan: A commercial real estate (CME) marketplace and tokenisation platform.
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Nothing highlights the tangible power of security tokens like billions of dollars of bricks and mortar.