Security token offering real estate helps in easy property investment

Posted by Chris Brown on December 18th, 2020

The investors get access to cash flow, fewer maintenance expenses, better capital efficiency, protection against any market crashes, sufficient liquidity, and a higher level of transparency. 

Any kind of property like commercial and residential can be tokenized with ease. Some factors to take into account before tokenizing a property are complying with the securities laws, developing the smart contract, deciding the ratio of tokenization, undertaking KYC/AML verification of all the accredited investors, and enabling investor traceability. 

The process to follow is the formation of a Special Purpose Vehicle (SPV), choosing the right blockchain network, offer the tokens to the potential investors either in the form of primary issuance or by trading them on the leading secondary markets, accepting multiple payment methods for purchasing the token, and distributing them to the investors. 

Hence, create a security token offering real estate now and take advantage of this trend in the industry soon.