The BaFin approved the German first Security Token Offering (STO) for block-chain based real estate investment and the second German STO at all. Thus, the German Federal financial services Supervisory authority, the launch of digital securities in the Real Estate sector. A new investment vehicle?
By Phillip Horch
23. July 2019BTC$9.981,00 -5.08%part Facebook Twitter LinkedIn xing mail security tokens, Bitcoin, and the regulatory safety
The price of Bitcoin and its notorious volatility makes many investors to create. The crypto-currency can fluctuate within a short period of time in the double-digit percentage range. In addition, the price of Bitcoin, so the common argument that no “real values” is. So for his crypto-currencies are often “only” money.
Security tokens offer an Alternative here. Because this is a relatively new way to place your capital in a block chain-based Form to create offers, in contrast to Bitcoin, Ripple & co. a certain degree of security, is, in principle, to digital securities. The Foundation Group wants to push for a Security Token Offering in this market. The Federal Institute for supervision of financial services approved now. It is the second Security Token Offering on the German Blockchain floor.
The Foundation of Real Estate Token
To do this, in accordance with the regulations of the German financial services Supervisory authority, BaFin, the Foundation, Real Estate Token that is secured according to the company, of real assets. This represents a security of a diversified real estate portfolio. According to information the Foundation has a Portfolio of several hundred million euros. The Foundation Group is investing in commercial real estate in the Metropolitan regions of Germany, including Hamburg, Frankfurt, Rostock, and Jena.
so Who will the price of Bitcoin fluctuates too much, you could look at the prices of the Foundation STO in more detail. Because each Token has at the time of issue a nominal value of one Euro. The interest rates are to reflect the continually increasing value of the real estate portfolio of approximately four to eight percent disagree. The focus is, according to the communication on investing in Hotels, student housing, kindergartens and offices.
Foundation of Real Estate Token & the Ethereum Blockchain
the purchase of The Token is to be handled also on the Ethereum Blockchain. The Foundation of Real Estate requires tokens, so no banks or clearing houses. Thus, it can buy the investors to taste and sell. As a result, the Foundation of Real Estate Token can be liquidated theoretically at any time. Thanks to the Tokenization of the Real-Estate area, this is ultimately a lot more liquid than. Accordingly, the Foundation Group shall:
The Real Estate Token combines the old world of Finance with emerging crypto industry. By the acceptance of crypto-currencies as a means of payment, it is possible to investment from all over the world. In addition, the tokenization of the real estate investments provides for very low investment [Euro], which makes real estate investment accessible for everyone and global financial Integration promotes.
conclusion of the foundations of Real Estate Token
Ultimately, it is the Foundation of Real Estate Token is, indeed, a novelty in the Bitcoin Ecosystem. While the list of crypto currencies with the aftermath of the ICO glut of 2017 fights and the many “Shitcoins” laboriously sorted out, with the Security Token a new investment opportunity is wide, which promises more security.
Just, if such a project is approved by the BaFin, promises to be the compared to traditional crypto-currencies such as Bitcoin, and especially ICO Coins like Ripple, Ethereum, IOTA & co., of course, a regulatory advantage. The Use Case is, of course, another, differs depending on the crypto-currency. In addition, we must not forget, particularly in the area of real estate, this market to the bubble tends to education.
More to Security Token Offerings in our Tutorial.
Here it goes to the Homepage of the Foundation Group.
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