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Real Estate Fund First of Its Kind to be Regulated by the FMA

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liechtenstein

RE Fund

Europe has been noted as a leader within digital securities for months now.  Unsurprisingly, it is a European nation, Liechtenstein, in which a new tokenized real estate based fund has been launched.

The development of said fund was possible through the collaboration of two companies – Token Factory and Bank Frick.

Bringing to the Table

In this particular instance, each of the participating companies bring different specialities to the table, making the fund possible.

Token Factory
  • Tokenization capabilities
    • Sale, generation, and distribution of security tokens to investors, representative of ownership within the fund
Bank Frick
  • Investor on-boarding
    • On-chain whitelist populated by pre-approved investors having undergone AML/KYC measures

Regulated

What makes this particular fund interesting is its recognition by the Financial Market Authority of Liechtenstein (FMA).

The regulatory body designated the aforementioned fund as an ‘Alternative Investment Fund (AIF)’.  In doing so, the fund becomes the first of its kind to be regulated in such a manner within the continent of Europe.

Commentary

With the announcement of this new regulated fund, also came the commentary of those responsible.  The following is what representatives from each, Token Factory and Bank Frick, had to say on the matter.

Bastiaan Don, Managing Director of Token Factory, stated,

Our tokenization solution is based on standard protocols like ERC20 and an open Blockchain (Ethereum). This allows our customers to maximize the potential of Blockchain technology without having to commit to a central technology partner or proprietary (closed) solution.”

Raphael Haldner, Head Fund and Capital Markets of Bank Frick, stated,

As the preferred point of contact for Blockchain Banking, we were again able to demonstrate the possibilities of Blockchain technology with the tokenization of a regulated investment fund. The issuance of digital, Blockchain-based fund shares leads to greater efficiency and a higher degree of automation in the transmission process.

While evaluating possible technology partners, we were impressed by Token Factory’s team, their track record and their far-sighted and understandable tokenization solution.

We are pleased to take this step to further strengthen our service offering in the issuing business and are confident that we have set an important milestone for future developments.”

Popular Implementation

While digital securities hold the potential to transform many industries, to date, the world of real-estate has been the greatest benefactor.  Furthermore, although there are examples world-wide, Europe is most definitely leading the way.  The following articles are just a few examples of European real estate being tokenized.

BitBond and Klickown to Tokenize German Real Estate

Tokenized Real Estate on Ignis Blockchain

MBK Announces Real Estate Tokenization Project

Speaking with Bastiaan

We were fortunate to have recently interviewed Bastiaan Don through our on-going interview series, hosted here at securities.io.  In this exclusive conversation, Bastiaan Don discussed, not only his own entrance into blockchain, but how Token Factory hopes to develop the sector.

Interview Series – Bastiaan Don, Managing Director of Token Factory

Token Factory

Founded in 2018, Token Factory maintains headquarters in Zug ‘Crypto Valley’ Switzerland.  This forward thinking company is currently comprised of multiple branches, which address different market needs.  These include Blockimmo (RE Tokenization), and STX.Swiss (secondary market trading).

Managing Director, Bastiaan Don, currently oversees company operations.

Bank Frick

Founded in 1998, Bank Frick maintains headquarters in Balzers, Liechtenstein.  Above all, the company works to provide bridging services between traditional, and blockchain based, banking.

CEO, Edi Wogerer, currently oversees company operations.

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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.

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