Red Swan announced deals with tokenized objects
Blockchain technologies are closely integrated into modern life and occupy more and more segments of the economy. If initially they were associated exclusively with e-currency, now this principle of information transfer and storage can be found in various spheres, even in real estate related operations. This can be seen in the example of the real estate company Red Swan from Texas, which tokenized assets for a total of 2.2 billion dollars.
The transition procedure was carried out in cooperation with Polymath, a company that deals with cybersecurity issues.
According to Red Swan, it has 30 thousand investors who have all the necessary accreditation to operate in the commercial real estate industry. They have already registered with the block-platform and are conducting some operations through it, with plans to provide an additional $4 billion. For this type of interaction, Red Swan has created an optimal business model in which it will make a profit by allocating a percentage of tokenized capital.
So far in circulation tokens, which are represented by 16 real estate objects. Among them are apartments in multi-storey houses, which are located in California, Texas, New York, as well as a farm of 16 acres, where they grow cannabis. The latter is located in the Canadian province of Ontario.
Tokens, equivalent to 780 million dollars, plan to be sold to accredited investors. The transaction will be carried out according to a preliminary agreement. This transaction for sale of tokenized real estate is considered the largest in the world.
Sale of this type of assets will be of interest to those businessmen who intend to invest from 500 thousand to 10 million dollars and do not have enough funds to purchase class A real estate in the traditional market. Therefore, investors intend to use tokenized assets, transactions with which have a risk share.
Red Swan company explains such a step by its desire to increase capital turnover in the segment. Tokenization of real estate objects will allow money to freely interact in the market. This variant of transactions gives an opportunity to open the share capital, which will circulate for a long period of time.
It should be noted that Red Swan is not the only company that carries out the real estate tokenization procedure. Not so long ago Flyt platform announced its intention to implement the first STO objects in Africa. In this case, they want to use tokens to buy shares in Flyt Hospitality Fund, which invests in the hotel business.
BrickMark, a real estate company that operates through a Blockchain, has bought 80% of the shares of an office space of 1,600 square meters in Zurich. The deal was made by exchanging tokens worth $135 million.