Tokenised assets mean that shares in virtually any real economy asset are digitised and can be bought in the form of security tokens. As in a traditional stock market, security tokens represent the immutable right of ownership in an asset and allow investors to receive dividends or profits.
A benefit of digitizing securities is that they become highly divisible, meaning that investors can buy small percentages of tokenised assets. Such fractional ownership is an eye-catching investment model as it dramatically reduces the buy-in threshold, allowing retail investors to participate in institution-grade deals.
The growing demand for alternative income and the advent of blockchain technology are challenging the traditionally closed shop of institutional investment. Until now, the sky-high minimum investment threshold, soaring fees, and complicated structures with multiple intermediaries have made investing practically inaccessible for an average individual.
Smartlands is the first regulated blockchain-based crowdfunding company in the UK, and is out to disrupt legacy financial markets. Its platform has been created to democratize the global investment space by introducing the concept of fractional ownership.
Smartlands has begun to tokenise commercial property in the UK giving it first-mover advantage; their Nottingham property is already live.
“Imagine, you can now own the equivalent of just one square metre in a building and have the option to trade that share on an exchange 24/7,” explains Smartlands CEO Arnoldas Nauseda.
“Both fiat currencies and cryptocurrencies can be used to fund bids on Smartlands, making security tokens issued on our platform a useful tool for portfolio diversification. For asset owners, it’s an alternative way to raise capital from an international circle of investors, adding liquidity to the asset. Fractional ownership, enabled by asset tokenisation, will revolutionise the traditional investment space – potentially unlocking a multi-billion global industry that previously has been out of reach for retail investors”.
Registered with the FCA, Smartlands will offer investment opportunities in various asset classes, starting with real estate.
“We spent almost two years building a solid legal and business foundation prior to launch. We’ve developed a platform that employs advanced blockchain technology with fast, cheap, and secure transactions. We’ve gathered a team of visionaries and executives who come from traditional finance, banking, real estate and software engineering, united by the idea to shape the future of investment through innovation. And finally, we created a legal framework for our business to make sure our investment offerings are fully compliant. Now, having done our homework, we’re excited to launch”, Nauseda said.