Blockchain Factory App to Tokenize $225 Million in Real Estate Assets

  • The initial coin offering (ICO) model has expanded to include a new regulatory compliant fundraising model called security token offering (STO).
  • Blockchain App Factory, an Indian DLT-enabled software developer, is helping real estate firms tokenize their assets on a blockchain.

Blockchain App Factory, a distributed ledger technology (DLT) focused firm that recently began working with security tokens, is reportedly managing three tokenized securities projects worth an estimated $225 million.

Blockchain App’s management team said they’re helping three companies in the real estate sector to tokenize their assets - in order to raise funds for the projects.

Security Token Offerings

As covered, the process of tokenizing real-world assets, or security token offering (STO), allows the holders of physical good and services to earn returns on their investments - while also remaining compliant with relevant regulations such as securities laws.

Blockchain App Factory’s developers have created an asset tokenization platform - which will be used by the company’s clients to “digitize” their real estate assets. The platform can also be used to conduct STOs for art projects, venture capital funds, and various other types of assets.

Before introducing DLT-based platforms for launching STOs, Blockchain App had mainly been helping its clients develop smart contract, initial coin offering (ICO), and Hyperledger-powered solutions.

Helped Over 30 Firms Launch ICOs

Notably, Blockchain App’s development team has helped over 30 crypto firms successfully complete their ICOs.

Projects completed under the Blockchain App team's guidance include those offering ERC-20 compliant tokens, companies launching their own blockchains, and firms that have developed their own mineable coins.

In order to offer blockchain-based financial services, Blockchain App Factory has hired a team of consultants with the relevant industry experience. The company’s consultants include professional auditors, qualified legal experts, and those with experience working in the traditional finance sector.

Regulatory Compliant Investments

Commenting on the importance of adhering to regulatory requirements, Ramkumar Subramaniam, the co-founder and sales director at Blockchain App Factory, said:

STOs' key focus is on the regulations' sphere, albeit, technology will also follow suit to help the industry thrive. Our team of developers with adept technical know-how has developed tokens that are regulatory compliant, across jurisdictions.

Ramkumar Subramanium

Subramaniam added that investors now seem to be less interested in ICOs, and are beginning to turn their attention towards STO-based projects - as these are properly regulated and also backed by real-world assets.

Showing his support for the Stellar network and the IBM and Linux Foundation-backed, open-source blockchains platform, Hyperledger, Subramaniam said: “Standardization in token protocols is much needed, [and] we believe that it must be carried out on blockchains such as Hyperledger and Stellar."