Tokenized real estate marketplace launches with $237M in assets

Tokenized real estate marketplace launches with $237M in assets

Despite receiving hype as a potential killer-app for blockchain, tokenized real estate has in many ways failed to live up to its early promise.

However, fintech startup Reinno has just launched an investment platform for tokenized United States commercial real estate, covering $237 million worth of property at launch.

Accredited investors globally can now participate in several different offerings, including both individual assets and diversified property portfolios.

All of the properties are income-producing, and including medical facilities, residential blocks and industrial buildings.

The new platform will allow investors to enter the commercial real estate market with a minimum investment of $5,000, with no fees for creating or maintaining an account, or buying tokens.

READ  Walmart Uses Blockchain Tech to Track Shrimp Supply Chains

At present all potential investors must be accredited or qualified individuals that comply with the U.S. Securities and Exchange Commission regulations.

However, this could change in future, as it ultimately comes down to the choice of the tokenization client, as Reinno CEO Viktor Viktorov explains:

But other categories of SEC regulation do allow investment by non-accredited investors, and these can also be accommodated within the platform.

Due to regulations, any real estate investment tokens cannot be traded on secondary markets for up to 12 months after the offering is closed. This means that investors’ funds are essentially locked-in and illiquid for this period.

READ  Tether Mints 300M USDT in Chain Swap, Corresponding Burn Still Awaits

However, Reinno has developed a model which allows it to instantly approve loans backed by the tokens. Loan to value (LTV) ratio is dependent on the property but is generally between 60 and 85%.

This aims to provide a higher level of liquidity, compared to other methods of investing in real estate.

Reinno is certainly hoping that its new platform helps to realize at least some of the hype around tokenized real estate.

Leave a Reply

Your email address will not be published. Required fields are marked *

Want to automate your crypto Trading?
Try this new trading Robot!

Your information will be validated and you will be automatically redirected to the trading robot advanced dashboard.