Is fractional ownership and tokenization the future f…

Property Investor Today has covered the work of Smartlands – the first regulated blockchain-based crowdfunding company in the UK, and the first to tokenise property in Britain – a number of times in the recent past.

Here, to get a greater insight into tokenisation, cryptocurrencies, fractional ownership and what these could mean for property investment, we speak to Arnoldas Nauseda, CEO of Smartlands.

Explain how tokenisation actually works…

If you and your readers know what ‘public issuance of shares’ means, congratulations, you now have a reasonably firm grasp on how asset tokenisation works. We now have the technology to turn your title right as an investor to any share of any asset in any asset class into a tradable digital token – that’s it in a nutshell.

The difference from an IPO is that, again, because of what the blockchain technology can do for us, it’s much cheaper, much faster and much more secure to issue shares through a Security Token Offering (STO).

Most importantly, when asset owners issue shares of their assets digitally, they are giving opportunities to a whole new type of investors – the ‘everyday people’. Depending on the platform, the investment buy-in can be set as low as needed for anyone to participate. Literally, anyone with a bank account or a crypto wallet, or both, can be introduced to the concept of ‘securitised fractional ownership’, which we at Smartlands consider our claim to fame.

The regulatory framework for this process is now in place, and the secondary market for unlocking the liquidity is rapidly forming (for instance, Smartlands is partners with Archax whose upcoming security token exchange is slated for launch before the year’s end). 

Do you genuinely think fractional ownership and cryptocurrency is the future for property investment, or will it remain a more niche market?

Absolutely. The future of investing in property lies in the digital realm. Consider the liquidity…

Source Link