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RealBlocks raises $3.1 million for Tokenized Real-Estate Platform

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RealBlocks raises $3.1 million for Tokenized Real-Estate Platform

An Impressive Raise

Blockchain company, RealBlocks, has recently announced the closing of its latest round of funding. This successful raise saw RealBlocks bring in $3.1 million.

A variety of companies contributed to this funding.  Most notably, Science Inc., and Morgan Creek Digital. Each of these companies has close ties with the digital securities sector, as they work towards the continued maturation of the industry.

With this funding, RealBlocks aims to continue development of their blockchain based real-estate platform. As a company, they have recognized the merits of digital securities backed by real world assets such as real-estate. As such, they aim to bring, not only accessibility, but liquidity to the real-estate market.

Those also included in the raise were Zelkova Ventures, Ulu Ventures, and Cross Culture Ventures.  All venture capital firms.

Commentary

Upon release of the announcement, representatives from each company spoke on the matter. Here are a few words form those individuals:

[block]4[/block], Founder & CEO of RealBlocks, [block]5[/block],

“With the support of our strategic investors, we’re accelerating development of our product and adoption of blockchain technology for real estate, an industry that previously hasn’t seen much innovation. This is a great opportunity to improve the investment experience for both sponsors and investors while also minimizing friction throughout the entirety of the process.”

[block]6[/block], Cofounder & Managing Director of Science Inc., [block]7[/block],

“We invested in RealBlocks because this use of blockchain technology has real-world benefits that perfectly align with our investment model. We believe that the real estate market, like nearly all asset classes, will be increasingly data-driven and digitized or digitally native, and we look forward to building on our history of transformative companies.”

[block]8[/block], Founder & Partner of Morgan Creek Digital, [block]9[/block],

“2019 is going to be an incredibly important year for blockchain projects. After years of experimentation and development, the market expects these companies to solve real problems now. RealBlocks is one of the teams that has a working product and has shown they can execute at a high level — that is one of the reasons why we are excited to invest. One of our core theses at Morgan Creek Digital has been that every stock, bond, currency, and commodity will be tokenized at some point in the future. RealBlocks has developed a solution that is going to help the best players in the real estate industry join the blockchain revolution.”

RealBlocks

Those behind RealBlocks founded the company in 2017, with headquarters in New York.  Above all, RealBlocks facilitates capital raising.  They do so through the fusion of blockchain and real estate. Through the issuance of digital securities, RealBlocks draws the appeal of investors and security token issuers alike.

Company operations are spearheaded by founder, Perrin Quarshie – a graduate of both Georgia Institute of Technology and Massachusetts Institute of Technology.

In their press release, Quarshie briefly described a few benefits of the RealBlocks platform. He stated, “Our platform also provides opportunities for post-issuance liquidity. Investors will be able to credit their platform wallets with Digital/Fiat Currency and then purchase tokens representing ownership of the underlying real estate via private placements. Through our platform, investors around the globe are afforded the ability to efficiently invest and fundraise for real estate offerings without the complications and excessive costs of public securities registration.”

Science Inc.

Science Inc. is based out of Santa Monica.  Above all, the company acts as a venture capital firm, investing in promising start-ups. Examples of these include companies such as DollarShaveClub, Science Blockchain, and others.

In addition to detailing funding events, we have also taken a look at Science Blockchain in past months. To learn more about this project, make sure to visit out token listings page HERE.

Morgan Creek Digital

Morgan Creek Digital is a newly founded arm of Morgan Creek Capital Management. While each branch acts as venture capital firms, this new arm specializes in blockchain and digital securities.

This branch was formed in early 2018, and is spearheaded by Anthony Pompliano – a prominent figure in the industry.

In Other News

The funding discussed here today continues a trend of interest toward companies developing the digital securities sector. Here is another examples of a successful funding event:

Securitize Raises $12.75 million in Series A

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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.

Real Estate

RealT Announces Partnership with Uniswap Exchange

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Detroit RealT Tokenizes Real Estate on Ethereum

The real estate market continues to lead the way in blockchain adoption. This week, the US-based fractional ownership real estate platform, RealT announced a strategic partnership with the crypto exchange Uniswap. The news represents a further expansion of blockchain technology in the United States’ real estate sector. Also, it provides unprecedented levels of liquidity in the market.

RealT

RealT is a fully compliant web-based platform that provides global investors with the ability to purchase fractional ownership of US properties. Token holders receive property ownership interests in the form of tokens called RealTokens. Currently, the firm offers properties in Detroit, Michigan with plans to expand nationally in the coming weeks.

RealTokens

RealTokens operate within the Ethereum blockchain as security tokens. These tokens include all compliance and regulatory commitments directly into its programming. ERC-20 compatible security tokens are by far the most widely used in the cryptospace. As such, these tokens have some benefits.

Importantly, as an ERC-20 compatible token, RealTokens enjoy an unprecedented level of interoperability. This added interoperability allows the tokens to enjoy some unique capabilities. These capabilities include the ability to utilize a wide variety of wallet options.

As a RealToken holder, investors gain a host of rights and benefits. These benefits include a share in the property’s rental profits. Additionally, investors gain the opportunity to vote on property decisions such as maintenance, leasing, and liquidation. In the event the property is sold, token holders receive a share in the sale proceeds equal to their percentage of ownership rights in the property.

Uniswap

Importantly, RealTokens allow for trading on the Uniswap exchange. Basically, this popular exchange provides for a seamless trade of any digital asset on the Ethereum blockchain. Importantly, Uniswap retains all of the token’s compliance protocols throughout the life cycle of the token. This ensures that each RealToken follows the current SEC guidelines.

Uniswap Exchange via Homepage

Uniswap Exchange via Homepage

According to company documentation, RealT and Uniswap became the first firms to offer a digital asset representing traditional securities launched on an open finance exchange with this maneuver.  This event occurred on Monday, November 4, 2019, when RealT’s flagship property, 9943 Marlowe Street in Detroit, Michigan officially went live on the exchange. Now, investors can instantly buy or sell Marlowe RealTokens using ETH.

RealT Seamless

Speaking on the decision, the Founders of RealT, the Jacobson Brothers, Remy, and Jean-Marc discussed the importance of the milestone. They noted how the tokenization created a seamless interface and unmatched efficiency in the sector.

Real Estate Goes Blockchain

This latest news is just another example of how blockchain technology revolutionizes the real estate sector. Now, investors can gain fractional ownership of real estate as easy as exchanging Ethereum. Every day more firms turn to tokenization as a valuable strategy to improve liquidity in the market.

RealT and the Future

You can expect to see these types of frictionless transactions continue to expand across the real estate market as blockchain technology continues to proliferate globally. RealT appears to have a game-winning strategy in place for the digitization of the economy.

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Real Estate

Tokenized Real Estate on Ignis Blockchain

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Max CrowdFund on Ignis Blockchain

This week, Max Property Group B.V. made crypto history after the issuance of the first security tokens on the Ignis blockchain. As part of the arrangement, Max Property Group tokenized a part of its real estate holdings onto the Ignis platform as a controlled asset. The news showcases the further expansion of tokenized real estate in the EU market and increased development on Ardor’s commercial blockchain ecosystem.

This tokenized real estate became MPGS security tokens, also known as Asset I.D. 7646766282089936451. MPGS token holders gain rights such as profit-sharing in the property’s rental income. In fact, token holders gain most of the rights afforded to company shareholders with the exception of voting rights. Additionally, each share in the property falls under the monitoring and control of STAK, a Dutch Foundation.

Ignis

Ignis is the public blockchain of the Ardor platform. This 4th generation blockchain features a robust design created specifically for Dapp development. Some of the most advanced features provided by Ignis include messaging, voting, and asset exchange protocols. Additionally, the blockchain can function as a data cloud.

Ignis Blockchain via Homepage

Ignis Blockchain via Homepage

Importantly, Ignis utilizes a Proof-of-Stake (PoS) consensus mechanism. PoS consensus is far more efficient than Proof-of-Work systems because they don’t require nodes to compete over computationally heavy algorithms. While PoS systems aren’t perfect, many see this form of consensus as the natural evolution of cryptos. Notably, Ethereum plans to shift to a PoS consensus mechanism in the coming months.

Ardor

Ardor developed Ignis with the goal to create a developer-friendly blockchain platform that could easily be built atop of. The platform is packed with tools to build blockchain applications that are cost-effective, secure, and scalable. Notably, Ardor is a BaaS platform developed by Jelurida.

Max Property Group,

For its part, the Max Property Group provided the real estate. This firm specializes in crowdfunding and the fractional ownership of real estate. Currently, the Dutch company possesses millions of Euros in assets under management in the Netherlands, the United Kingdom, and Germany.

Notably, the Max Property Group entered the market in 2016. The firm specializes in property sales, management, and rental activities. On top of these offerings, the company operates a popular property investment and blockchain academy.

Max Crowdfund

Max Crowdfund is a subsidiary of the Max Property Group. This company is the crowdfunding wing of the Max Property Group. Importantly, the platform is compliant with EU securities standards. Max Crowdfund brings together developers, investors, and regulators.

Speaking on the tokenization decision, Max Property Group’s Managing Director, Mark Lloyd took a moment to discuss the changing real estate landscape. He noted the care his firm takes to stay up-to-date with the latest technological advancements. He also discussed the overall trend to digitize the sector.

Max Crowdfund and Ignis

Max Property is at the forefront of EU real estate tokenization. The firm continues to demonstrate its pioneering strategies in the space. This latest strategic partnership gives the company access to a host of valuable EU real estate to tokenize. It also showcases Ignis’s true capabilities. You can expect to hear more about Max Property, Ardor, and its Ignis blockchain in the coming weeks.

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Real Estate

MBK Announces Real Estate Tokenization Project

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MBK Announces Real Estate Tokenization - Estonia

Blockchain continues to disrupt the EU real estate market. Just this week, the Tokyo-based investment bank, MBK announced plans to tokenize the sale of a property in Estonia. The news follows the greater trend of traditional financial institutions entering the blockchain space via a tokenized real estate STO.

According to company documentation, MBK created a strategic partnership with the Singapore-based real estate firm BitofProperty (BOP). BOP’s unique approach to the market made the firm well-known in the region. BOP specializes in fractional ownership of EU real estate.

The firm breaks down acquired property rights into smaller shares that are then offered to investors. Investors receive dividends equal to the number of shares they hold in a particular property. This strategy allows investors to diversify their holdings.

For its part, BOP will handle the acquisition of the properties. Then, the firm will fractionalize ownership rights and tokenize the shares. The company will work alongside MBK to ensure the tokenized shares are compliant with the current EU regulations.

Angoo Fintech

Once the tokenization of the property is complete, MBK will offer the new financial instruments on its subsidiary – Angoo FinTech. Angoo Fintech is an Estonian company acquired by MBK a few months prior as part of the firm’s EU repositioning strategy.

MBK Tokyo via Homepage

MBK Tokyo via Homepage

MBK Strategic Partners

Notably, MBK signed a deal with the Hong Kong Stock Exchange-listed firm, BS Securities to further develop the company’s Asian market positioning. MBK is already a business powerhouse in Japan and China, but company executives hope to utilize this new tokenization strategy to catapult the firm into the forefront of the EU market.

The Growth of MBK

MBK is a Tokyo Stock Exchange-listed merchant bank. In 1974, MBK entered service under the name West Japan Spinning & Weaving Co., Ltd. Since that time, the organization has grown to become a premier banking institution in Asia.

Estonia Crypto

Estonia continues to show the world its pro-crypto aspirations. Back in 2018, the country was among the first jurisdictions in the European Union to legalize crypto-related activities. The Estonian Financial Intelligence Unit (FIU), the regulator issuing crypto-related licenses, approved almost 900 firms since that time.

Estonia received praise for its easy-to-navigate registration process. Some blockchain-based firms reported that they received their licensing in only one or two weeks. The only catch is that the licensed would revoke if the company did not start operations within six months of receiving approval.

Two Estonian Crypto Licenses

Estonia broke down their licenses into two main categories. The first was for firms which operated digital asset exchanges. Of these companies, 500 received licensing. Additionally, 400 wallet providers received approval to date.

Unfortunately, the Ministry of Finance introduced changes to the licensing process on May 3, 2019. The changes extended processing times from 30 to 90 days. Additionally, it established the requirement for all companies to operate a branch in Estonia. Additionally, the registered office address and the board of directors now need to be located in Estonia. Lastly, the state fee for the emission of the license increased from €345 ($386) to €3,330 ($3,729).

MBK – A Tokenization Strategy to Win

As it stands today, MBK has a strong position in the Asian market. The firm will soon extend that reach into the EU markets through this latest maneuver. You can expect to see more tokenization projects emerge from this innovative firm in the coming months.

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