Through a partnership with Prime Trust, QuantmRE, a blockchain-based platform for real estate, has announced that they will be holding their own security token offering. The token will be reflective of fractional property ownership in the real estate market.
Compliant security token offerings are becoming more and more common in the United States. QuantmRE is the next project to be holding their own by announcing the offering of EQRE tokens for sale which will be based on fractionalized ownership of occupied, residential real estate assets in the United States.
Prime Trust, a cryptocurrency custodial firm, will be responsible for the digital assets on behalf of investors along with the mandatory KYC/AML compliance checks.
Tokenizing the Real Estate Industry
Many cryptocurrency analysts in the security token space have spoken of the real estate market as a prime candidate to be among the first sectors of the economy to be tokenized. This is because the real estate sector has historically had a liquidity problem.
The EQRE token will be responsible for tokenizing fractional ownership of properties: if the homeowner sells their residence, QuantmRE will be receiving the principle back plus their share of any capital gains or losses.
QuantmRE made the news recently for raising over $1.7 million in seed capital from prominent investors.
Matthew Sullivan, CEO of QuantmRE, has also said that they will be partnering with Securrency for off-chain token validation technology. He added that a few trading platforms have already shown interest in EQRE and “we expect to make the first announcement in 2019” with the expectation that “$50 million” will be raised during the STO, with the potential of a higher cap if demand is there.
“We already have several hundred homeowners who have expressed interest in releasing the value locked up in the equity in their homes,” Sullivan added.
Although the STO for EQRE tokens is currently limited to American investors, Sullivan stated that the offering will be made available to non-US persons in Q1 and “non-accredited US investors” in Q2.
Will the real estate market be the first sector of the economy to be revolutionized by the security token industry? Does QuantmRE have the right idea? Let us know in the comments below.
Image courtesy of QuantmRE.
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