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Inveniam Capital to Host $266 million Digital Security Offering

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Inveniam Capital to Host $266 million Digital Security Offering

Tokenized Real Estate

An announcement made today by Inveniam Capital Partners, has revealed that the group intends to tokenize $260 million worth of real-estate. The first chunk of which is a $66 million USD property located in Miami.

The idea of tokenized real-estate is one of the most prevalent, and popular, in the growing world of digital securities. Real estate has long represented an asset class that is high on potential, but low on accessibility and liquidity. Through the use of blockchain technology, Inveniam Capital Partners looks to change this.

By offering investors access to this event, Inveniam is giving investors the means to gain exposure to stable assets.  All the while maintaining their footing within the cryptocurrency industry.

This development was made possible, as Inveniam has collaborated with service providers such as Securrency, Vertalo, Bitgo, and Itbit – Each providing their own specialty and service offering.

Dutch Auction

Bringing further intrigue to the opportunity, is the manner in which these digital securities will be sold. To date, most STOs provide investors with the opportunity to by tokens at a fixed rate – often with limitations on the amount of shares that can be purchased. Inveniam Capital Properties have decided to utilize a Dutch auction instead.

A Dutch Auction allows for investors to essentially bid for their desired holdings. With a fixed number of tokens available, investors take part in a timed event which allows for them to submit bids. Each of these bids will state the quantity of desired shares, and what they are willing to pay for them. Upon closure of the auction, the investors which submitted the best offers will be rewarded with digital securities representative of ownership in the properties.

Commentary

In an excerpt from their information packet, Inveniam has high praise for cryptocurrency, and its place within finance.

It is stated,

“This trade is the first of its kind: a large, multi-offering placement of real financial instruments in tokenized form to be held in crypto wallets and sold via Dutch auction. In undertaking this transaction, we will send a clear signal to markets that cryptocurrency can indeed be a store of value which can be used in institutional transactions.”

With this message being sent, it is clear that Inveniam is confident in the future of cryptocurrencies. They are also confident in their ability to be a trailblazer in this young industry. This is made clear when they state,

“We are the first to tokenize multiple complex debt instruments and has produced tokenized instruments for seven different transactions to date, including the full provenance of diligence materials, deal documents, and distribution of tokens to holders of the debt instruments. Inveniam is the first to market and is the only company with the full business and technology stack in place to create, distribute, list, and sell highly functional security tokens for complex financial instruments.”

Inveniam Capital Partners

ICP is a blockchain focused investment firm, which was founded in 2016. The company maintains headquarters in New York, where operations are overseen by CEO, Patrick O’Meara.

In Other News

As stated above, real estate has shown itself to be one of the most intriguing applications of digital securities. With this in mind, here are a few articles detailing events pertaining to the use of STOs within real estate.

Security Tokens are disrupting the Real Estate Market

Realecoin – The First Real Estate Fund built on the ETH Blockchain

Interview Series – Slice RE

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Digital Assets

MountX Real Estate Capital to Tokenize 15+ Properties in Licensing Deal with Vertalo Real Estate (VRE)

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real estate

MountX Real Estate Capital will be utilizing the Vertalo Real Estate (VRE) platform to tokenize 15 properties over the coming year.  Founded in 2019, MountX Real Estate Capital is headquartered in Mexico City.  This young company offers Latin investors the ability to invest in a variety of Canadian real estate opportunities.

Real estate tokenization continues to be one of the dominant industries in the digital security space.  Real estate is perceived as a relatively easy and safe asset class to tokenize.  This is exactly the sentiment MountX is offering to its investors, facilitating the ability for Mexicans to invest in ‘safe’ real estate market of Canada.

Foreign Real Estate

MountX licensing the VRE platform from Vertalo, represents a unique opportunity due to the cross-border nature of the deal.  MountX is a gateway to ‘safe’ Canadian investment opportunities, that under normal circumstances, many would not have had access to.

MountX is involved in multiple cross-border investment opportunities, with three currently active on its site.  This makes it a company that is aware of the complexities surrounding foreign real estate investments.  These complexities are noted by MountX CEO, Enrique Suarez, when commenting on the choice to turn to tokenization.

“We are very excited to partner with Dave and the Vertalo team to launch our platform. We share the same vision of simplifying complex transactions with great technology, backed with robust security and transparency. This partnership enables us to empower people to become global real estate investors, in a simple, secure and exponential way.”

Vertalo Real Estate (VRE)

For those unfamiliar with VRE, we first detailed its launch in mid-2020.  The launch of VRE marked a concerted effort by a leading company in the digital securities sector to focus on a specific asset class.  Vertalo offers a suite of services that benefit all digital securities, with the VRE division focusing solely on real estate.

Vertalo CEO, Dave Hendricks has touched on this point, commenting,

“…Vertalo’s VRE was conceived and launched to help increase access to the best real estate investment opportunities, powered by simple-to-use technology, and designed for teams like MountX. The Vertalo VRE team looks forward to helping MountX execute against its vision.”

The VRE branch of Vertalo was created specifically with deals like this in mind.  It is a promising sign that mere weeks after launch, a licensing agreement with MountX Real Estate Capital was able to be achieved.

Past Deals

Vertalo has been at the center of various high-profile developments throughout 2020.  As a result, it remains firmly atop a select crop of companies vying to be industry leaders.

While real estate may be a perfect asset class to benefit from tokenization, it is by no means the only asset class to benefit from tokenization.  The recent partnership between Vertalo and DealBox which will see the companies tokenize 22 different projects in a variety of different industries.

Of these anticipated 22 projects, at least 8 have already begun the process, including,

 

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Digital Securities

Investment Activity in Japan Signals Interest in Digital Securitization

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Investment Activity in Japan Signals Interest in Digital Securitization

All the pieces are falling into place for the digital securities market in Japan. One of the biggest traditional financial institutions in Japan, Tokai Tokyo Financial Holdings is advancing rapidly with its plans to digitize the financial services the company provides in a traditional sense.

New Investment in Blockchain Company by Tokai Tokyo

According to a Nikkei report, Tokai Tokyo completed a new investment in blockchain development company Hash Dash Holdings. Tokai Tokyo Financial Holdings will own 33% shares of the company, which is working on integrating the blockchain technology into the traditional financial industry. The aim is to enable the issuance of digital securities while providing investors with a trading service on their mobile devices.

Digital securitization is picking up steam as more traditional financial institutions dare into the digital asset space. With uncertainty looming over traditional markets, digital assets are piquing the interest of investors – and not only retail, but institutions are taking clear steps to be part of the paradigm shift. Tokai Tokyo’s efforts to build a digital securities exchange is an example of the latest venture into the field.

Per the report, Tokai Tokyo’s platform will tokenize securities, and will start with Japan’s real estate industry with plans to explore digitization of Intellectual Property assets as well as corporate bonds.

Alongside Tokai Tokyo, other shareholders are the founder of Hash Dash and ICH X Tech, the company operating iSTOX. With this venture, the goal is to issue digital securities powered by blockchain technology and trade these on iSTOX, the digital security exchange based in Singapore.

The iSTOX exchange also has previous strong ties with Tokai Tokyo, as the latter had announced a $4.5 million investment in ICH X Tech just seven months ago in November 2019.

As reported, the iSTOX digital exchange was part of the MAS Fintech Sandbox program undergone by the Monetary Authority of Singapore and was one of the select successful products. The motivation behind the investment was to make digital securities on the iSTOX platform available to Japanese investors; this being possible through the brokerage capabilities of Tokai Tokyo Financial Holdings.

If at the time, the digital securities exchange was a sandbox, it has since become a recognized market operator with a capital market services license. Other iSTOX investors included the Singapore Exchange (SGX), state-owned Temasek’s investment firm Heliconia Capital, and Hanwha Asset Management.

Asian countries have been known to be at the forefront of the digital asset industry – starting off with a dominant presence in the mining industry to having a lot of cryptocurrency exchange platforms across different countries and a population eager to experiment with novel cryptocurrencies.

Japanese Companies Bringing Digital Securitization Closer to Mainstream

In the past few years, Japanese companies have also been actively seeking opportunities to enter the digital securitization space. SBI Holdings has been long making the headlines in the industry with their collaboration with Ripple and XRP.

In the past year, Nomura and Nomura Research Institute started the BOOSTRY platform, which focuses on securities and bonds issuance. Tokenization platform Securitize already created a Japanese real estate investment platform, receiving funding from numerous high profile Japanese investment firms.

While Tokai Tokyo Financial Holdings is almost a century old company with deep roots in the traditional financial markets, the company is determined to adapt to changing market conditions.

In December, Tokai Tokyo made an investment of 500 million yen ($4.7 million) in Huobi Japan, the popular crypto exchange licensed in Japan. In order to execute their vision of becoming an “advanced financial integrated group”, Tokai Tokyo is focused on meeting consumer needs by deploying leading technologies from FinTech and the cryptocurrency space, according to the company’s press release at the time.

Further in the press release it was stated:

The financial business using blockchain technology has advanced rapidly in recent years with the application area of crypto assets and Security Token Offering (STO) expanding globally.

Also, in March Tokai Tokyo became a member of Japan Security Token Offering Association, a self-regulatory organization for STOs.

The intent from the Japanese financial giant is clear and it looks like the company is making it a priority to have a strong foothold in the digital securitization industry.

Overall, it’s a natural and likely necessary progression that financial institutions have to consider, seeing that in the next decade digital securities may become the prevalent financial products that investors look for.

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Digital Securities

Real Estate Increasingly Popular within Digital Securities – Vertalo and Tokensoft each Launch New Platforms

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On The Hunt

Blockchain based endeavours, such as cryptocurrencies, are only now beginning to grasp where they can thrive.  It has taken a decade, but there are finally a crop of ‘killer applications’ being developed.  This is most recently evident through the growth of decentralized finance (DeFi).

Digital securities are a step behind cryptocurrencies, and are still in the searching phase.  With the sector first being distinguished only a few years ago, it is still in its infancy.  In time, will it be tokenized art that catches on? Or maybe it will be supercars?

Multiple companies believe that they have determined the best use case for digital securities, and their accompanying services – Real Estate.

Prime Candidate

There are a variety of reasons which make real estate the perfect asset class to undergo restructuring with digital securities.

  • Traditionally, real estate suffers from low-liquidity
  • High fees and various ‘middlemen’
  • Restrictive access

While each of these issues may not stand out as being blatantly detrimental, they most certainly hold back the potential of an industry, ripe for change.

Through the use and implementation of digital securities, each of these points can be addressed.  In doing so, opportunities will arise where there were none before; All the while, giving more people access to a newly liquid asset class.

To learn more about why digital securities and real estate are a perfect fit, check out Vertalo’s FAQ on the subject HERE.

The Players

In the past week, we have seen two big announcements surrounding digital securities and real estate.  These have come from a pair of U.S. based companies, each quickly becoming leaders within their space – Austin based, Vertalo, and San Francisco based, TokenSoft.

Vertalo Real Estate

An influx of digital securities into real estate has shown enough promise, that Vertalo has just formed/launched an entire new branch of their company named Vertalo Real Estate (VRE).

In order to hit the ground running, Vertalo hired the full team at Advantage Blockchain.  With this experienced team spearheading the new endeavour, there will, surely, be new and positive developments announced in the coming months.

Among the talent coming on board from Advantage is RECM President, Gary Brandeis.  In this new position Brandeis will operate as the President of Vertalo Real Estate.

This new branch is described as being “focused on transforming ownership structures for the commercial real estate market…throughout the United States.”

While initial focus may remain on commercial opportunities, the end goal is to expand into real estate opportunities of all sizes.

Dave Hendricks, CEO of Vertalo, states,

“…the hiring of the Advantage Blockchain team reflects the dramatic increase in interest from commercial real estate owners for increased efficiency and secondary liquidity.  Vertalo has always considered commercial real estate – and eventually residential portfolios of all sizes – to be an ideal target market for digital transformation.”

TokenSoft Real Estate

Much like Vertalo, the merits of digital securities merging with real estate has not escaped the attention of TokenSoft.  This young company has just announced the launch of a ‘private label marketplace for real estate’.

The purpose of this new platform is a simple, but lofty, goal – enable secondary sales of real estate based private equity.  Beyond secondary sales, Tokensoft offers a full suite of services made possible through partnerships with companies, such as Signature Bank and Inveniam Capital Partners

Mason Borda, CEO of Tokensoft, states,

“Real estate investments like these are traditionally illiquid for several years. Leveraging a combination of regulatory automation by use of the blockchain, we’ve been able to bring a much needed liquidity solution to market.”

In Other News

To learn more about why such importance is placed on liquidity, make sure to peruse Borys Pikalov’s thoughts in the following article.

Solving the Liquidity Puzzle for Security Tokens

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