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This recent Forbes piece “The Future of Real Estate Investing – A New Global Asset Class Emerges” discusses Security Tokens – a powerful new way to invest in commercial real estate through blockchain technology.
Written by Garratt Hasenstab, President of The Mountain Life Companies and Founder of REsource Blockchain, a Proptech venture focused on the development and deployment of smart contracts and Securitized Token Offerings (STOs) based on prime real estate assets through Blockchain protocol dApp solutions facilitating the adoption and realization of development crowdfunding and secondary market real estate investment liquidity.
As the blockchain world matures, so do the coins and tokens that this new decentralized world is built upon. You’ve likely heard of Bitcoin, which is considered a “store of value” or “digital gold”, however there are now almost 3,000 different coin or token offerings in this marketplace offering different means of exchange and serving different specialized purposes, above and beyond a simple store of value.
One of the biggest, most impactful and most exciting new types of tokens emerging now is the security token. As it sounds, the ‘securities’ moniker comes from the financial term of the same, referring to the name given to a fungible, tradeable asset that has some value attached.
A security token can represent a share in a company, a voting right in how a company operates, a unit of value or a combination of all three. The main difference between a traditional security and a security token is the token is automatically managed through smart contracts on the blockchain.
The financial world is all abuzz about security tokens, thanks to their ability to ace the middlemen from the trading process (disintermediation), lower the costs of creating and maintaining securities (efficiency) and bringing greater trust to the process (transparency), all while being inked in the permanent decentralized ledger.
Maybe the most critical thing to understand about security tokens is that they are compliant with all pertinent financial regulations having been designed with institutional investors in mind.
For more details on how security tokens are revolutionizing the real estate investment world, check out the Forbes article here:
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