Liechtenstein Financial Market Authority Approves State-of-the-Art Tokenized Real Estate Investment Product

Jul 9, 2023
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Liechtenstein Financial Market Authority Approves State-of-the-Art Tokenized
Real Estate Investment Product

For the first time in Europe, the
Liechtenstein Financial Market Authority (FMA) has approved
the offering prospectus for a tokenized real estate investment
product. CROWDLITOKEN AG is a pioneer for new financial
innovations. Its Security Token Offering is now running in
European countries, where qualified and retail investors are
enabled to invest in first-class real estate in Europe. The Swiss
Financial Market Supervisory Authority (FINMA) has also confirmed that no
special regulatory approval is needed to market this new class of digital
assets in Switzerland. — Real estate investment is categorized as
a highly sought-after financial objective. Unfortunately, this form of
investment is particularly prohibitive, accessible only to the world’s
most wealthy, who must be in possession of sufficient capital to allocate into
real estate. CROWDLITOKEN AG is making preparations for its first
class real-estate collection, where retail and qualified investors
can purchase and gain fractional ownership rights. Previously, first
class real estate has been exclusively reserved for those who qualify for
financing substantial sums of money ($1,000,000 and higher). Investors in
CROWDLITOKEN AG can leverage the expertise and CRT token platform to
streamline investments into high value real estate. An overhaul of
how the real estate industry works has been long overdue. Luckily, due to
the emergence of technological innovations and decentralized systems, a new way
of investing in real estate has been born through the use of
digital bonds. CROWDLITOKEN AG, based in Triesen/Liechtenstein, is
launching digital bonds in the form of security tokens that
combine the advantages of direct and indirect real estate
investments. Direct real estate investment involves
financial management and potential ownership hurdles. Through
security tokens, indirect real estate investments provide
investors with exposure to the increasing value of real estate
portfolios in exchange for their investment, without the elaborate
procedure of maintaining full real estate ownership. CEO Domenic
Kurt comments, “This represents an evolution in the world of financial products.
New technologies are enabling us to launch a first-class product that not
only offers new investment opportunities, but also remedies
inefficiencies, cuts costs and safeguards transparency.” The product is a
digital representation of a subordinated bond, whereby the bond as well
as the underlying real estate is digitised via blockchain. The
token – called “CRT” – replicates the income streams and increasing value of the
real estate properties. The CRT token uses a private fork of Ethereum,
originally designed in Switzerland to comply with local financial exchange laws.
CRT tokens represent both a payment method of CROWDLITOKEN’s real
estate as well as fractional ownership of real estate portfolios.
There has been a stark contrast in the speed at which investors can acquire,
trade, and sell real estate bonds, tokens, and ownership rights. The
blockchain enables all of these functions to execute in a verifiable
manner with no allowance for fraud or artificial inflation of value.
CROWDLITOKEN AG is preparing to set the standard for blockchain-based
real estate investing. Holders of CRT can select their properties to
invest in and thereby tailor their own portfolio. They will benefit from an
attractive yield of 5–7% p.a. The ability to invest small amounts in selected
European real estate, easy tradability on highly liquid digital stock
exchanges (in preparation) and the investment flexibility pose as key innovative
features of this unique real estate investment product. For more
information, please visit crowdlitoken.com. About CROWDLITOKEN AG
CROWDLITOKEN AG is a Liechtenstein-based start-up that provides investors with
access to European core real estate via blockchain technology. This is
based on real estate-linked security tokens – termed “CRTs” – i.e. a digital
representation of a bond that returns a yield equating to 5–7% p.a. CRTs are
fully compliant and combine the advantages of direct and indirect real estate
investments.