Real Estate
Resolute Partners with Standards and Consensus
This month, the US real estate market got a jolt of energy after Resolute announced a strategic partnership with the largest STO advisory firm in China – Standard & Consensus. Now, the firms seek to host an STO in the coming months to further Resolute's digital real estate aspirations across the US.
Resolute incorporates over 30 years of US market experience in order to seek out distressed properties with optimal return-on-investment (ROI) potential. Teaming up with Standard & Consensus (SNC) was a bright move for the firm for a number of key reasons.
Standard & Consensus will be responsible for marketing, issuing, and managing Resolute's STO. This strategy ensures that the firm receives excellent market penetration across Asia. Additionally, it removes regulatory compliance concerns from the equation, as CNS will handle these issues directly.
A Twist to an Old Strategy
The concept of tokenizing real estate is by no means a new one, but with the advent of security tokens, regulators are now onboard. Asian investors are eager to participate in the US market, but many lacked the network and funding to do so in a traditional manner. Now, these investors gain direct access to these properties, without going directly through a property purchase in traditional terms.
Resolute's Success
According to company documents, fund team members already successfully handle more than $1 billion in US real estate assets. Considering the huge amount of distressed properties across the US, Resolute has plenty of investment opportunities moving forward.
Distressed Property – US
According to a recent study, there are nearly 1.5 million distressed single-family homes in the US. That’s about 1.52% of all the single-family homes in the country. Unfortunately, this trend seems to be set for a continuation in the coming years. Luckily, investors can now gain more access to these properties using the Resolute platform.
How Resolute Works
Resolute is a blockchain-based real estate crowdfunding platform. Basically, the platform allows investors to micro-invest across numerous properties. This strategy is more profitable for investors because it allows them to diversify in a way which wasn't possible prior to the advent of blockchain technology.
Liquid Shares
In order to accomplish this task, Resolute transforms each potential real estate investment into a tokenized asset. Investors then purchase tokenized shares in the property. Notably, shareholders are able to trade their investments across regulated exchanges and on a peer-to-peer basis. This technique adds liquidity to the market.
Consequently, the utilization of a liquid share class provides investors with more control and flexibility. An investor that may have only been able to fund one property is now able to build a strong diversified portfolio with the same amount of capital. Also, their investment is more secure on a blockchain, and they are able to trade and sell their investments easier.
Resolute Pushes Forward
Resolute gains significant Asian market positioning from the deal. It places the firm in with an exclusive class of token issuance platforms supported by Standard & Consensus. These firms include Securitize, Swarm, Harbor, tZERO, and Open Finance. Now, this partnership is set to make some serious waves in the coming months as the project moves forward.