UPRETS and DigiShares have come into an agreement to carry out a European focused security token offering of the New York-based Oosten property. UPRETS is among the first companies to focus on providing a compliant, convenient, and advanced real estate tokenization technology to investors and property owners across the globe.
This PropTech company also provides a real estate protocol that has been tested and proven in the past. DigiShares is a European company that provides its clients and partners with white-label blockchain digital asset tokenization solutions.
DigiShares and UPRETS thus seek to combine their technologies and get the best out of both worlds.
Understanding real estate tokenization
Real estate tokenization refers to the process whereby you represent an ownership interest in a property with a token (Oosten Condominium in this case). The token can represent a loan secured by the property, equity in the asset or a stream of income.
Why tokenize real estate
Real estate is the most important asset class in the world, worth over $200 trillion. However, because of the many inherent problems, real estate has never become a mainstream investment. For example, many people are prevented from investing because the entry point is high. Also, because of cross-border restrictions, delays, and excessive paperwork, liquidity is low.
Tokenizing the asset ownership streamlines fractional investing and investment management. Additional steps, such as smart contracts and trade on exchanges will bring about the efficiency needed to address these traditional market shortfalls.
The Pilot project
UPRETS’ parent company, Xinyuan Real Estate, owns condos at the Oosten Condominium (421 Kent Avenue) in Brooklyn, New York. They will analyze and select unsold units for the pilot project. The size of the initial security token offering can be anything between 1–4 million euros. The two companies will agree on the size of the security token offering, price per share, and minimum/maximum investment size. European investors will be the main focus.
The Role of DigiShares in creating digital shares
DigiShares digitizes ownership of assets and represents it as tokens on the blockchain. They are the lead partner on this security token offering and will provide the security token offering platform and customize it to fit this particular project. DigiShares will also help to devise the strategy for the STO across the European markets and involve other partners from its network for investor relations, marketing, legal services, etc.
Each token on the blockchain will store a digital ownership certificate and will represent a single share in the property. The DigiShares platform will be used to whitelist, approve and verify investors to purchase the tokens that have been created. Investors will benefit from the immediate settlement, enhanced liquidity, and wide access to the international market.
UPRETS role in the security token offering
The company will be the business lead for this security token offering. UPRETS will provide the property, the Osteen Condominium, which will be used for the security token offering. It will also provide important documentation such as the title, deed, audits, contracts, and permits. In addition, UPRETS will take care of investor relations, coordination, and all hiring.
UPRETS uses the X-bolt blockchain and the company is among the top 5 in China based on patent count. The technology is patented by RChain Technology. Xinyuan Real Estate, the parent company to UPRETS, has properties valued above $1.5 billion globally.
“We see real estate as one of the most promising markets for blockchain tokenization technology to be implemented. As the global infrastructure for banking, tech and capital markets rebuilds itself on blockchain over the next decade, the real estate industry will also be impacted. Real estate industry investors and developers are actively seeking ways to reduce delays, costs, and obscurity in transferring ownership of real estate-related securities. We hope that together with UPRETS we can help resolve some of those issues”, said Claus Skaaning, CEO of DigiShares.
Skaaning added: “We see UPRETS as one of the significant global players in the real estate industry and is very excited about the partnership. DigiShares will be the preferred tokenization partner of UPRETS in Europe and together we hope to work with developers and investors in order to develop more efficient, less costly and less error-prone processes and work-flows for the real estate industry”.
“Real estate remains to be the most valuable asset in class in the world. The barriers to entry such as liquidity and many intermediaries in this market can be solved through the blockchain. This partnership with DigiShares will bring sanity to the real estate market and make the digital security market more liquid. We intend to work as a team and become global leaders in real estate tokenization” said Dan Chase, CEO of UPRETS.
DigiShares provides a platform for issuance and post-issuance management of tokenized securities. It helps with the initial design of the security token such that it fulfills the requirements of the issuer jurisdiction, using the most popular security token protocols and helping ensure that the token may later be traded on forthcoming security token exchanges.
DigiShares is your trusted partner to ensure that your digital shares will be compliant and liquid.
UPRETS is a one-stop solution platform for security token offering founded in November 2018. As a subsidiary of a publicly listed real estate conglomerate (NYSE: XIN), we currently focus on providing a cost-efficient, compliant and advanced tokenized real estate investment platform for property developers and investors globally by our patented blockchain technology.
Using this platform from UPRETS, the developers can provide liquidity for their property investors and the investors can benefit from the rent dividends and returns of properties in world-class major cities, such as New York, London, and Dubai.
Consortium Chain by UPRETS: UPRETS.io started to develop its own consortium chain technology X-BOLT dated back in 2015. As one of the most mature blockchain firms in China, our consortium chain solution has already established 22 successful cases in multiple fields including insurance, real estate, logistics, and social networks.
For more information, visit www.uprets.com