BlockEstate and Polymath Partner to Create a Real Estate Security Token
BlockEstate, a US-based tokenized real estate fund that uses predictive analytic investment strategies to drive returns, is partnering with Polymath, a highly automated and scalable platform that makes it easy to raise capital and create security tokens, to create the BlockEstate Alpha Token (BEAT).
Security tokens are digital securities that represent ownership in an asset (similar to stocks and bonds), and can be exchanged and traded securely and instantaneously using blockchain technology. Industry analysts and leaders, such as Polymath CEO Trevor Koverko, predict that there will be more than $1 trillion of security tokens within the next five years, driven primarily by a massive influx of institutional capital.
The BlockEstate token will be one of the first security tokens issued in real estate representing fund share ownership for token holders, and will be configured using the Polymath platform. BlockEstate will use Polymath’s Security Token Standard Protocol, ST-20, which simplifies the process of creating and investing in BEAT while embedding legal and regulatory compliance into the tokens themselves. Blockestate plans to list BEAT on the OpenFinance Network (OFN), a trading platform for tokenized securities. OFN works with institutional and retail investors, on a global basis, deploying blockchain technology to facilitate more efficient trading of securities.
“One of the things that excites me and makes me most enthusiastic about what BlockEstate is doing is its using the blockchain mechanism to allow many more people to participate in the real estate investment world,” said Brad Galbraith, VP of Biltmore Farms and Chief Advisor to BlockEstate. “What BlockEstate is endeavoring to do, and where I think they’re going to be extremely successful, is broadening that platform for multiple people to participate in a variety of real estate investment arenas, and making it so they won’t be tied to a particular deal structure for getting in and out of those investments, which mitigates risk.”
Polymath launched the first securities token platform that enables the creation, issuance and trading of financial instruments on the blockchain. Polymath’s mission is to help create security tokens in a safe and regulated manner while reducing the problems caused in capital markets (e.g., exorbitant fees, long settlement delays, limited market hours). Polymath and its ST-20 protocol enables companies like BlockEstate to create and issue tokenized securities with the complex technical and legal functions of a token sale, Know-Your-Customer, Anti-Money Laundering (KYC/AML), investor accreditation checks, and development built-in.
The Polymath platform will enable BlockEstate to rapidly launch BEAT by encompassing all the “back office”, administrative and governance functions that otherwise would need to be established internally. Additionally, BEAT will be traded 24/7 without the need for intermediaries or centralized controlling functions.
BlockEstate aims to stand out from other real estate funds by combining an aggressive real estate portfolio with the liquidity, security, and power of blockchain technology.
This article does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Polymath Network (Polymath) is a decentralized platform that makes it easy to create security tokens. The Polymath ST-20 standard embeds regulatory requirements into the tokens themselves, restricting trading to verified participants only. The platform simplifies the complex technical challenges of creating a security token and aims to bring the multi-trillion dollar financial securities market to the blockchain.
BlockEstate is a US based tokenized real estate fund using predictive analytic investment strategies to drive returns for investors. We’ve partnered with Polymath and CoinList’s ComplyAPI to raise $50 million USD from accredited investors for one of the first tokenized US real estate funds.