Germany is on a bit of a securities token roll.
Yesterday, Crowdfund Insider covered the launch of a blockchain-based investment platform for early-stage companies that has received regulatory approval. Today, the Fundament Group has announced a €250 Million blockchain-based real estate bond – blessed by BaFin.
Fundament Group is the first company to receive approval from BaFin for this type of security offering. The platform is said to “open up German real estate market to global investors.”
According to Fundament, the bond is based on the Ethereum blockchain. The security leverages standardized and regulated financial instruments to build a globally tradable asset class that is backed by real estate projects. The Fundament Real Estate Token securitizes a right or share certificate using a digital token. With the Real Estate Token, investors can liquidate their investment at any time they want on designated secondary markets.
The token is said to be tradable worldwide, at any time, thus providing liquidity in a traditionally illiquid asset class.
Florian Glatz, Co-Founder of the Fundament Group, said that as the first company to receive approval from the German Financial Market Authority for a blockchain-based real estate bond, they are excited to enter the sales process for the Real Estate Security Token.
The Fundament Group is positioning itself as a link between the traditional capital market and digital, blockchain-based financing.
Investors may decide whether to make deposits and withdrawals denominated in Euros or in the cryptocurrency Ether.
The Fundament Group invests primarily in commercial project developments with a focus on properties in major urban centers throughout Germany, including Berlin, Hamburg, Rostock, Jena and Fulda, which it holds in its own portfolio in the medium- to long-term.
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