Keeping up our tradition of being the first to market with innovative new models – like when we were the first company to successfully launch a real-estate based STO in Q4 2018, raising $18M for the St. Regis Aspen Resort through the crowdfunding platform Indiegogo – we’re pleased to announce that we’re taking our commitment to tokenization and the STO model even farther.
Now, SolidBlock is raising up to $200M with the launch of the first-ever security exchange token offering (SETO) – a fully-regulated offering that will be available for immediate trading across several exchanges.
Instead of representing a single property, the SETO will include a portfolio of 10 trophy real estate assets in Panama, Germany, Malta, Bulgaria, and Israel, among others. Investors will enjoy dividends from the assets themselves as well as any potential value the offering gains in secondary trading.
As an initial exchange offering (IEO), the SETO offers a few exciting differences from the STO model that SolidBlock has offered up until now. For one thing, rather than initiating a separate funding round, the IEO releases tokens directly onto participating exchanges, raising funds from existing users, which radically streamlines the entire process.
Like an STO, however, the IEO offers full KYC/AML accreditation and oversight, so all parties are assured that transactions meet every relevant regulatory requirement through SolidBlock’s platform.
Just like with a traditional STO as well, the big win of the SETO is that we’re fractionalizing big assets into small pieces, lowering barriers to investment as well as offering investors far greater flexibility than traditional models and improving liquidity through the ability to trade tokens after purchase for crypto or fiat currency.
For asset owners, this model offers tremendous advantages, like the ability to raise funds quicker than through traditional routes like a mortgage or REIT, the flexibility to dictate some of the terms offered to investors, while still retaining full control of their project. Being part of the asset portfolio is also expected to create incredible buzz around an entirely new venture.
The asset portfolio SolidBlock is developing for the SETO will initially include a soft cap of the 5 projects mentioned above, raising a total of $100M. But since we’re always looking to make more for our owners and investors, we’ve set ourselves a stretch goal: a hard cap of 10 projects and a total raise of $200M.
Because this is a proof of concept, we’re accepting only premium AAA assets with strong valuation to give the entire portfolio its greatest chance of success. If you’re a property owner with an asset you’d like us to consider, or an investor looking for a chance to back the next great thing in tokenized real estate, we invite you to talk to us as we move ahead toward our goal of pioneering the next generation of real estate investment venture funding.
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