Cross-border real estate transactions are about to get much easier thanks to the advancement in blockchain technology and the rise of security tokens. Real estate Blockchain company RealtyReturns.io is the first cross-border blockchain-based real estate marketplace to offer access to prime U.S. real estate assets. Through this blockchain technology investors will gain access to real estate opportunities in the U.S. through their online portal.
Silicon Valley angel investor and founder of RealtyReturns Manny Fernandezand his team are on a mission. He co-founded a blockchain company to help investors around the world escape the volatile crypto markets and find safety in real estate. He first discovered this problem when speaking at a Slush conference in Singapore; the recurring theme that kept coming up in conversations after the conference were around crypto volatility, and what people should do about it.
“I began interacting with attendees living in Singapore and surrounding Asian countries. Many of the attendees I spoke with voiced their similar concerns with the volatility of the crypto markets and were looking for a safe place to invest their crypto,” Said Manny Fernandez CEO and co-founder of RealtyReturns, “Coming from a cryptocurrency, real estate and an equity crowdfunding background, I immediately saw huge potential to combine all three of these aspects.”
With his unique background in crypto, real estate, and crowdfunding, Manny believed he could solve a major problem that millions of investors in cryptocurrency were facing around the globe, and the solution revolved around real estate. The conference inspired him, he could see it all in his mind, but it wouldn’t be easy, there were challenges that needed to be worked out.
“Investors were concerned about the lack of liquidity in the real estate markets. With the typical real estate investment having a hold period of many years,” replied Manny as he recalled the conference, “our team figured out how the blockchain could fix this lack of liquidity by allowing investors to sell their ownership stake in a specific property with the push of a button through our platform; thus, creating a liquid real estate market.”
The problem of liquidity would be solved through security tokens, according to Manny Fernandez. Security tokens, not to be confused with utility tokens are backed by tangible assets and are investment contracts–they have intrinsic value. Security tokens in the case of real estate are digital representations of actual ownership of real estate assets; meaning that the token holder would be entitled to the same rights as physical owners –granting them passive income and profits upon liquidation.
“Tokenization lets an asset be separated into multiple layers of value. Whether it’s ownership, voting, or rights to future profit, each layer can be parsed out and repackaged in token form,” said Forbes contributor Jef Halfon in his July Forbes article, “tokenization brings much needed transparency, liquidity, interoperability, and automation to the market. “
“Securities by definition are ‘a fungible, negotiable financial instrument that holds some type of monetary value,’” said Tal Elyashiv, co-founder of the security token firm SPiCE Venture Capital. “Usually in the form of economic rights to some underlying asset.
There is no shortage of optimism for the RealtyReturns team as they set out to disrupt real estate around the globe, it seems to be more than starting another business for them and more about helping others increase their wealth.
“Security tokens have the potential to create wealth for millions of people around the globe by offering cross-border access to the holy grail of investing– the U.S. real estate market,” said Manny Fernandez CEO and founder of RealtyReturns.io.“For the first time investors will have access to fractional real estate investing through security tokens unlocking opportunities for passive income and capital appreciation.”
Will security tokens be adopted at mass scale and deliver on its promises to liquidate the oldest asset on earth? Or, is blockchain promising a real estate utopia that will fade with time?
The future value of cryptocurrency may be up for debate, but the value that blockchain technology brings to the division and liquidity of assets is undeniable. The blockchain security token revolutionizes assets by creating a standardized eco-system that honors digital property contracts in the blockchain. Tokenized assets in time will be just as valuable as the physical ones we can experience with our senses.
Democratizing global access to investment grade commercial real estate using the blockchain.