This is a young company, offering the ability to invest in a professionally managed real estate portfolio. More specifically, their proprietary platform finds opportunities for investment in residential homes.
The team at Property Coin is fully aware of two things:
- Security Tokens are the future
- Real estate portfolio growth requires large amounts of capital.
With this in mind, the team has decided to tokenize the company. This means that everyday investors will be able to buy tokens (PCX), which represent a 1:1 share in the company. As the company grows and accrues more assets, so does the value of a token owner’s investments.
In a recent interview with ‘Crypto for the Good (and Plenty)’, Property Coin CEO, Andrew Jewett, was asked a simple question:
In 5 years, Crypto will be…?
He responded, “Ubiquitous. I think you’ll see a mass adoption of not only the use of crypto for payment but crypto/ blockchain implementation in traditional capital markets. Securities markets are such a logical fit for the implementation of cryptography and blockchain based investments that eventually, all securities will be security tokens.”
How do they do it?
The whole process is a simple one.
- Investors purchase Property Coin.
- Property Coin invests this funding into high-return real estate flips.
- 100% of the profit upon flipping a property is re-invested into further properties
- Investor’s Property Coins grow in value alongside the company’s assets
- Token holders are entitled to 50% of earning profits.
The choice of property to invest in is completed through use of a proprietary platform developed for Property Coin. This platform allows for a thorough property assessment (current value, potential value, rehabilitation needed, etc.) At their current pace, over 1500 properties are assessed daily.
It is this same platform that allows for loans to be issued to investors of the platform. This is offered as a secondary service to the accruing of assets.
One of the benefits of working with security tokens is the necessary transparency. Security tokens are regulated more heavily than other token types. It is these regulations that enforce the divulgence of company information to investors, as they, themselves, ARE the company.
In providing transparency, Property Coin will make the property value of every asset known to investors. Token holders will be able to track the growth of their holdings, and how much money they have made in the process.
For an example of a monthly progress report, click HERE
At the Helm
Leading the charge is a duo of professionals experienced in the Real Estate industry. The team boasts over $150 billion worth of real estate closings.
Andrew and Matt each majored in Finance, and have gone on to accrue a wealth of knowledge in the real estate industry. Both founded Aperture in 2016, which has experienced great success. There is no reason to believe this venture, building off of Aperture, will be anything but successful.
While the STO for Property Coin has finished, the PCX token will be available on popular exchanges in the near future.
To learn details about the project, please view our Property Coin Token Listing page.
Byte-Sized Investing with Fraxtor
Democratic Investing with Fraxtor
Another company is looking to make their mark on the digital securities sector, as they ramp up operations surrounding their real-estate investment platform.
Naturally, as these types of investments represent ownership in an underlying asset, with an expected positive return over time, the Singaporean government views them as securities. What this means is that participation is restricted to accredited investors only, at this time.
Fraxtor notes a distinction in what separates their projects apart from others. Specifically, the vast majority of real estate based investment opportunities are restricted to developed properties. While these may represent great investments, the ability to gain exposure to such an asset on the ground floor typically proves to be more lucrative in the long run.
The issue with this, however, is that the amount of funds needed to invest in yet-to-be-developed properties is financially prohibitive. The result is that these opportunities are typically restricted to large property developers, not retail investors.
Fraxtor saw this, not as a problem, but as an opportunity to leverage the capabilities of digital securities, bringing the masses access to such investments; essentially democratizing real estate investing.
Representatives from each, Proptech and Fraxtor, took the time to elaborate on the need for their solutions, and how they will work.
Oliver Siah, CEO of Fraxtor, states,
“Investing in premium real estate is often out of reach for the average investor as it requires high capital outlay and is very illiquid. This makes property investment riskier for investors as they are not able to effectively diversify their portfolio. REITs, on the other hand, do not provide the returns that Private Equity Real Estate Funds can achieve. With Fraxtor, I hope to be able to democratize real estate investment…We have placed a digital wrapper around a physical asset which allows us to issued digital securities to our global investors so that they are able to participate in that particular investment.”
Jordan Kostelac, Director of Proptech, states,
“Now everyday investors like you and me can actually own a piece of grade A office tower in the biggest cities in the world. From an asset holder standpoint, it creates new sources of liquidity and allows them to improve that asset or creating yields from that asset by dividing up the ownership. In the same way as companies do in public offering of their equity.”
To date, Singapore has established themselves as one of the leading countries, with regards to acceptance of digital securities. Not only does the Monetary Authority of Singapore (MAS) host a FinTech Sandbox, they have been quite forward thinking with their endorsements towards companies such as iSTOX. Check out the following articles to learn a bit more about a few Singaporean based endeavours.
Operating out of Singapore, Fraxtor was founded in 2017. This young company specializes in bringing real estate based investments to the masses, through the use of blockchain based technologies.
CEO, Oliver Siah, currently oversees company operations.
Tokenizing London Penthouses and Greek Island Villas
Luxury Real Estate
With multiple STOs already on the docket from a variety of asset classes, Smartlands has just announced a new collaboration, which will, hopefully, see the addition of multiple more. This move sees the UK based company partner with Sotheby’s International Realty.
This collaboration will see the pair explore the feasibility of tokenizing multiple pieces of luxury real estate. The company notes two specific properties as holding the potential for tokenization.
- Greek Islands Villa
- London Penthouse Apartment
While details on the STOs are scarce, for the time being, it is indicated that the Greek Islands Villa is under management by a world renowned hotel network.
This collaboration spurred Smartlands’ Executive Director, Katharine Manderfield, into commenting. She stated that, “Deals of this level of exclusivity will open a new page in asset tokenisation.”
While many are still figuring out their first steps within the world of digital securities, Smartlands remain one of the few companies to have successfully completed an STO. Not only that, but they are now moving on to subsequent opportunities.
Like any experiences, they have the ability to shape our future actions. Expect Smartlands to learn from their past capital generation events, and apply that knowledge to the development discussed here today. The following articles take a brief look at just what these previous successes were.
Due to the nature of real estate, it has caught the attention of various tokenization platforms from more than just the United Kingdom. While there have been hiccups along the way – such as the failure of Fluidity and Propellr – real estate continues to be one of the more lucrative industries, which stands to be transformed by digital securities.
Despite beginning to branch into different sectors, such as commodities and disruptive start-ups, expect for real estate to remain a popular outlet on Smartlands’ path to reaching the goal of tokenizing $1 billion in assets.
Speaking with Arnoldas
Roughly 6 months ago, we were fortunate enough to have completed an exclusive interview with the then CEO of Smartlands, Arnoldas Nauseda. While he has since transitioned into the role of Chairman, our discussion with Arnoldas Nauseda remains relevant today, offering a glimpse into Smartlands operations.
Sotheby’s International Realty
Founded in 1976, Sotheby’s International Realty is a United Kingdom based company. While many associate the name Sotheby exclusively with fine art, there are company branches, such as Sotheby’s International Realty. This branch specializes in facilitating the buying/selling of real estate, with a presence in over 60 countries.
CEO, Philip A. White, currently oversees company operations.
Founded in 2017, Smartlands is a tokenization platform, which operates within the United Kingdom. Through use of the Stellar blockchain, this forward thinking company has developed a variety of solutions built to make fractionalized ownership of real world assets accessible to the masses.
CEO, Ilia Obraztsov, currently oversees company operations.
In Other News
Not content with opportunities based solely in the United Kingdom, Smartlands recently took their first steps towards operating within the United States. These steps were taken by forming an alliance with a U.S. based broker/dealer, bringing support for state-side investors on their platform.
XIN Group Tokenizes NY Properties – UPRETS
This week, the Chinese-based tokenization platform, UPRETS announced plans to begin tokenization of several condominiums in New York owned by the XIN Group. The news showcases how blockchain technology continues to upend the real estate markets globally. Additionally, it represents a more international approach to real estate liquidity concerns.
In order to accomplish this monumental task, UPRETS formed a strategic partnership with the Xinyuan Real Estate blockchain platform. Together the firms intend to offer investors a stake in the XIN Group’s Oosten Property holdings.
XIN Group – New York Properties
These luxury condominiums are located in Williamsburg, Brooklyn. The units feature a modern floor plan with 2-3 bedrooms per unit. As you would imagine, NY property values are through the roof. Recognizing the growing demand for these properties, XIN Group intends to fractionalize the ownership of these highly sought after units.
Fractional Ownership – UPRETS
Tokenization removes most of the boundaries preventing people from investing in real estate. For one, there is far less paperwork to get approved. Additionally, investors can make micro-investments in order to diversify their holding accordingly.
In this instance, each token will represent a $1 share in the ownership of the properties. In this manner, anyone can begin their real estate investment career. Additionally, these low investment entry levels provide much-needed liquidity to the local real estate markets.
The properties tokenization will take place on the UPRETS permissioned blockchain. This unique and highly functional blockchain is based on X-BOLT consortium chain. Consequently, it provides users with added functionality when compared to other options.
Flexible Blockchain – UPRETS
For example, the UPRETS blockchain design is meant to be flexible. The blockchain can communicate with other blockchains to facilitate a more streamlined payment system. Currently, payment can be made via the Bitcoin blockchain. Notably, developers hope to expand these capabilities to include Ethereum investors in the coming weeks.
This added interoperability allows URT tokens to trade on a wide variety of secondary markets. Consequently, more liquidity is added to the entire investment process with this strategy.
Property Tokenization is on the Rise
The XIN Groups’ advantageous strategy is now the new normal. Every day new property tokenization firms emerge. The benefits provided by these companies are too much to ignore. Tokenization opens local real estate to international investors and streamlines the entire sale process in a way previously unimaginable.
Additionally, Tokenization allows the average person to invest in real estate without putting forth a huge amount of funding. Traditionally, real estate investment takes a considerable amount of cash. Plus there are tons of regulatory and financial hoops one must jump through in order to complete a traditional property sale. Tokenization eliminates a large portion of these requirements.
XIN Group – Moving Forward
The XIN Group is at the forefront of the tokenization revolution. When you consider how desirable a spacious condominium located in New York currently is, it’s easy to see the logic behind choosing these properties. As such, you can expect to see this trend continue until the majority of all real estate sales occur via the blockchain.