BaFin Green Lights Tokenized Real Estate Bond
- It is the first time that BaFin has given its approval to such an issuance
The German Financial Market Supervisory Authority (BaFin) gave its approval to a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based bond issuance this Tuesday. It is the first time that the German regulator has given the green light to such a project.
The company behind the bond is Fundament Group, a German firm that specializes in the tokenization of assets. Based in Berlin, the group mainly invests in commercial real estate and has holdings in Berlin, Hamburg, Rostock, Jena, and Fulda.
The company's bond is based on the Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term blockchain and is backed by a portfolio of properties spread across Germany. The bond has an issued volume of 250 million euros ($280 million).
Any time, anywhere
Fundament's technology means that an investor putting funds into the bonds will receive a right or share certificate in the form of a digital token. Those tokens can then be traded on secondary markets at any time and without the help of a bank.
"As the first company to receive approval from the German Financial Market Authority for a blockchain-based real estate bond, we are excited to enter the sales process for the Real Estate Security Token, while already preparing the tokenization of other highly attractive assets," said Fundament co-founder Florian Glatz.
Fundament is one of several firms attempting to tokenize real estate holdings. Although many in the crypto-sphere have argued that most assets are likely to be tokenized, property is more likely than others to go through the process.
That's because, unlike many other asset classes, real estate has traditionally been hard to trade. Breaking it up into tokens means that this can be done much more easily.
The German Financial Market Supervisory Authority (BaFin) gave its approval to a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based bond issuance this Tuesday. It is the first time that the German regulator has given the green light to such a project.
The company behind the bond is Fundament Group, a German firm that specializes in the tokenization of assets. Based in Berlin, the group mainly invests in commercial real estate and has holdings in Berlin, Hamburg, Rostock, Jena, and Fulda.
The company's bond is based on the Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term blockchain and is backed by a portfolio of properties spread across Germany. The bond has an issued volume of 250 million euros ($280 million).
Any time, anywhere
Fundament's technology means that an investor putting funds into the bonds will receive a right or share certificate in the form of a digital token. Those tokens can then be traded on secondary markets at any time and without the help of a bank.
"As the first company to receive approval from the German Financial Market Authority for a blockchain-based real estate bond, we are excited to enter the sales process for the Real Estate Security Token, while already preparing the tokenization of other highly attractive assets," said Fundament co-founder Florian Glatz.
Fundament is one of several firms attempting to tokenize real estate holdings. Although many in the crypto-sphere have argued that most assets are likely to be tokenized, property is more likely than others to go through the process.
That's because, unlike many other asset classes, real estate has traditionally been hard to trade. Breaking it up into tokens means that this can be done much more easily.