OpenFinance Network has made headlines once again this week following the announcement of a partnership with BlockEstate. A $50 million US real state fund tokenized by BlockEstate will now be listed on OpenFinance Network, one of the premier trading platforms for tokenized securities.
OpenFinance Network and their Reputation of Compliance with the S3
The OpenFinance Network is working to establish a ‘one stop shop’ in the security token marketplace. Their services provide enterprises with the tools to create and issue tokens, but they also function as an exchange, allowing for secondary market trading.
As a US-based end-to-end platform, they offer a fully SEC compliant clearing and settlement process. They also offer their own security token standard, named the Smart Securities Standard, or S3 for short.
The S3 is comprised of three different layers: the interface, compliance, and data layers. The compliance layer is built on top of public blockchain technology, which permits an exchange of tokens only when jurisdiction-based regulatory compliance has been met.
The success of the services offered by the OpenFinance Network— especially during a time of ambiguous regulatory requirements— have resulted in a number of partnerships. BlockEstate is the latest enterprise to make that list.
BlockEstate’s Tokenized Real Estate Fund to be Listed on OpenFinance Network
BlockEstate has raised more than $50 million from accredited investors for one of the first private US real estate funds to be tokenized. They will not use the S3 standard, since the fund is tokenized using Polymath’s ST20 standard on the Ethereum network.
BlockEstate tokens will represent a share of the BlockEstate Alpha Fund. 90% of the funds raised will go toward the acquisition of real estate properties throughout the US to generate income streams. 10% will be held for various fund management, administration, legal, and advisor fees.
Every quarter, BlockEstate will use anywhere from 50-100% of net profits to repurchase tokens from token holders on the open market. As a method to provide investor incentives, the repurchased tokens will be burned in an effort to decrease the circulating supply of tokens, thereby increasing the value of each token.
In the near future, accredited investors will be able to purchase and sell the token through the OpenFinance Network.
Steven Skinner, Co-Founder of BlockEstate, provided the following comments:
“We are excited to partner with OpenFinance Network, an industry pioneer that will provide a secure and regulated trading platform for BlockEstate’s security token holders.”
Recent Partnerships Suggest OpenFinance Network is an Industry Leader
BlockEstate is not the only company to form a recent partnership with OpenFinance Network. Earlier this week, Sharpe Ventures announced a strategic investment in the growing platform.
Other partnerships include Securitize, Issuance, Harbor, Polymath, Swarm, Huobi, Tokensoft, and Atomic Capital.
With more than 135 security tokens listed for trade and a total market cap of over $6 billion, it’s difficult to deny OpenFinance as an industry leader.
What do you think of the recent partnership between OpenFinance Network and BlockEstate? Will added liquidity result in BlockEstate becoming the leading tokenized real estate fund? We want to know what you think in the comments below.
Image courtesy of OpenFinance Network and BlockEstate.