Premier Estates Are Offered As Fractionalized Assets in Asset-Backed Security Tokens

Maheen Hernandez By Maheen Hernandez October 29, 2018 Off

With security regulations becoming stringent, and transparency of information being reinstated by regulators, there is a detailed flow of information about the assets that back the security tokens, and therefore investors are developing confidence in the asset types.

When the retail investors understand the reliability of the regulatory process that is going to be a mass acceptance.

Several investors who are already in the cryptocurrency market understand the difference between ICOs and the STOs.  They are able to appreciate the reliability contributed due to regulatory compliance.

Several investors who are looking for supplemental income and those who are looking to have ownership in real estate assets are ideal investors for security tokens or real estate tokens.

Real estate coins backed by established real estate firms provide their investors with a promising return on investment from the rental incomes. The coin will hold its value regardless of the real estate climate.  The rental income will, in turn, support the value of the coin.

The inefficiencies and frictions ordinarily inherent with any property are removed in the security tokens.  There is improved access to tokenized investments.  The funds raised with security tokens are used to purchase properties, which will then be managed to create income for the investors.  People will be able to buy property using crypto.

The team who are managing these assets are considered by the investors as markers of reliability.  It takes people with extensive knowledge in the Fintech and real estate industry to efficiently man the process.  The knowledge of the global financial industry is a must.

It is only a seasoned team that will bring in qualities that are important for forming key strategic decisions. It is only with appropriate cost savings that investors will be able to put returns back to the investors. An experienced management team as well understands the importance of communicating with investors.  They understand the importance of communication and contracts to be made to family offices, hedge funds, venture capitalist firms, and angel investors.

Every investor is looking for access to equity in the early stages of investment; such returns are only possible in real estate properties with rental income.

For the sake of compliance, the “who, where and what” of the customers are forever kept updated.  Regulators are continuing to clarify on the norms applicable to the security tokens industry.

When it comes to regulation, some of the brightest minds in the industry are working to set the foundational framework for regulations and compliance with respect to token issuance.  And several companies are including the compliance elements in their own platforms, and therefore the security token industry after the initial trials and tests is here to say.  They are all set to revolutionize the real estate industry.

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