March 7, 2020 / by Crypto.IQ
Red Swan, which is a real estate investment platform, has tokenized USD 2.2 billion of United States and Canadian real estate on the Ethereum (ETH) blockchain and has plans to tokenize another $4 billion of property.
In this initial offering, Red Swan has tokenized 16 Grade A commercial properties in Texas, New York, California, and Ontario. Accredited investors can buy shares of these properties and will receive ST-20 Ethereum (ETH) tokens.
Although Red Swan is using the Ethereum (ETH) blockchain, for now, they plan on switching to an enterprise blockchain for increased speed and security. That being said, these real estate tokens are quite secure since they are backed by $1 billion of insurance from Prime Trust.
The idea behind tokenized real estate is that investors who cannot afford to buy entire properties can buy fractions of a property. These tokens can then be bought and sold by whoever owns them, creating a highly liquid crypto-based secondary real estate market.
Ultimately, perhaps Red Swan’s $6 billion foray into tokenized real estate is the beginning of a whole new sector of the crypto space. If Red Swan sees success, undoubtedly more tokenized real estate offerings will follow.