A security token offering backed by real estate has been launched by Property Token SA in Luxembourg. This is the first STO issuance in the Grand Duchy.
The digital offering has been completed with the support of Tokeny Solutions, a law firm and consulting firm in the blockchain sector.
Based in Luxembourg as well, Tokeny Solutions is a Fintech that recently announced fundraising from Euronext.
The property backed tokens are said to be securely stored in a “zero electronic” physical vault provided by Coinplus, another start-up located in Luxembourg. A minimum investment of €1000 was required.
Additional details were not available at the time of this report.
Investors will benefit from the income generated and the eventual capital gain when reselling the property.
The process of “digital securitization” has allowed a group of private investors to hold tokens which provide rights attached to a high-standing building located in the Grand Duchy, in the heart of Belval.
“We see real estate as one of the key asset classes that drives the adoption of tokenization. Tokenization brings the opportunity to a wider group of investors and in the long term will bring liquidity to an asset where it has been non-existent,” commented Luc Falempin, CEO of Tokeny Solutions.
A secondary exchange listing is in the works so investors will be able to access liquidity.
Tokeny states that a future real estate program that will be “tokenized” has already been identified and will be made public before year-end.
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