Real Estate Sector
Customized by maatDAO
REAL ESTATE TOKENIZATION is a “state-of-the-art” digital crypto asset designed for professional investors. It provides a safe way to enter the fast-growing real estate industry while adhering to European Directive MIFID2 regulation. This cryptocurrency offers borderless value and efficiency, without the inherent volatility associated with traditional cryptocur-rencies, and draws on the stability and heritage of the precious metals industry.
Our mission is twofold, reintroducing two vital elements to the global monetary system:
- Stable, Debt-free store-of-value to the global monetary system taking advantage of technology Infrastructure and;
- Supported by traditional Corporate Finance -securitization- as an Insurance Wrap structure to avoid any risk, reassuring hereby a layer of safety for all stakeholders involved.
It provides the performance of payments technology backed by Prime Financial Institutions.
The ecosystem is addressed to Professional Investors. It is user friendly and highly secured, including:
- Payment Platforms: Deposit and withdraw national currency (fiat) securely and at low cost with leading payments providers (more platforms are being added all the time).
- Exchange & Wallet: The Exchange & Wallet is an atomic-swap, decentralized exchange and wallet app (mobile and web) that allows users to readily swap FIAT and Collateralized Assets.
- Storing Value: It is cryptographically scarce and gold-backed,so value increases as use of the network grows.
- Peer to Peer Trading: The platform is a fast, easy & cheap way to move money anywhere, anytime without expensive, cumbersome intermediaries.
- Commerce: It facilitates efficient commerce and provides access to a large user base from day 1.
- State of the art technological infrastructures: That provide evidence- based development, unparalleled security and low energy consumption.
The maatDAO Platform monetizes a portion of the asset tokenizing the investment. All this is done through a set of features such as:
- Immutable and transparent: Verifiable, data added to an immutable journal, as it keeps record of every movement.
- Cryptographically Verifiable: These assets are secured by means of an update traceability.
- Serverless: Easy to scale, providing monitoring and metrics tools.
- Streaming Capability: Provides a near real-time flow of any changes to your data stored.
Real estate tokenization is similar to crowdfunding in the sense that it involves raising capital from multiple individuals to finance a particular venture. Both crowdfunding and real estate tokenization allow people to pool their resources to invest in a project, business, or asset.
With the Real estate tokenization, instead of contributing money directly to a real estate investment, investors purchase digital tokens that represent ownership or shares of the underlying property. These tokens can be bought and sold on blockchain platforms, allowing investors to participate in the real estate market without the need for significant upfront capital. Like traditional crowdfunding, real estate tokenization relies on collective participation, where many investors each hold a fractional share of the property.
The key difference is that crowdfunding typically involves supporting various types of projects, businesses, or initiatives, while real estate tokenization focuses specifically on dividing real estate assets into tradable digital tokens.
Therefore, Real estate tokenization is a process similar to crowdfunding, but it involves using a “smart contract”, which is an automated code on a secure digital platform called a blockchain, to divide a valuable property into smaller pieces or tokens. People can buy or own these tokens, which represent a share of the property. By holding these tokens, they become part owners of the real estate and share in its profits and losses.
Here's an example to help understand this better
Consider this scenario: A property owner possesses a valuable property worth $100,000 and faces an urgent need for funds. Despite the urgency, the owner is unwilling to sell the property at a reduced price. Meanwhile, a potential investor shows interest in the property but lacks the financial capacity to purchase it entirely.
Here is where the real estate tokenization enters as an innovative solution that addresses this situation. Through real estate tokenization, the property can be divided into smaller units known as "tokens" or simply said; "smaller purchase contracts." Investors can purchase these tokens, with each token representing a fractional ownership in the property. By doing so, these investors become co-owners of the real estate and gain a stake in its financial performance going forward.
This method benefits both parties involved: The property owner secures the necessary funds without compromising on the property's value, and investors gain the opportunity to invest in real estate without the requirement of a substantial upfront investment or the need to purchase the entire property outright. This may also enable the property to be gradually invested in over time.
The Real Estate Tokenization process takes place over a decentralized network, ensuring complete transparency. Tokenization can be applied to various types of real estate, including commercial, residential, and even trophy assets
For instance, high-value commercial properties like shopping complexes or malls can be sliced into fractional shares, making investment more accessible to big or small investors. Similarly, apartments in multi-story residential buildings can also be tokenized, simplifying quick sales and purchases. Tokenization also allows owners of trophy assets, which are highly sought-after properties, to convert their valuable holdings into liquid assets while raising funds for other projects.
Trophy assets encompass properties with exceptional scarcity and demand among investors. These may include iconic buildings with substantial real estate value or unique locations such as vineyards producing exceptional grapes for winemaking or riverbanks with precious stones. Tokenization allows a wide range of possibilities, from digitized shares and ownership of a portion of the deed to equity interests in legal entities or collateralized debt.
Home sales grew strongly in 2021 (38.4%) and 26.2% in the first two months of 2022, according to data collected in the latest research regarding real estate.
A part of this real estate investment was channeled through real estate crowdfunding carried out by 'proptech startups', which seek to innovate and add value to the sector. Their main role is to act as intermediaries between the promoter of a real estate project seeking financing and small investors who want to enter this sector.
According to Alexis Rech, co-founder of Colombia Proptech, "There are innovative real estate projects that are not easy to finance and that is where crowdfunding has a long way to go”. “The profitability of real estate crowdfunding projects is usually between 8 and 12% per year. The first investors will always have a higher return than those who enter last”, says Rech.
The most important advantages of real estate tokenization
When real estate undergoes tokenization, it gets divided into fragments through the implementation of distributed ledger (blockchain) technology. These fragments are then represented as crypto securities in the form of tokens. Each token corresponds to a share in the underlying real estate, as defined in the legal documentation, encompassing associated rights and obligations. A "smart contract" is responsible for maintaining a registry of the investors' token ownership.
- Smaller capital to start investing.
- Democratization of investments previously limited to traditional players.
- Broader access to financing by real estate and construction companies.
- Easy connection of supply (projects) with demand (need for investment).
- Reduces the financial costs associated with the operation.
- Allows investment in projects in other countries.
- Anonymity of the investor and data protection
- Investment traceability from origin to return
- Inclusivity for New Investors: Lower capital requirements remove barriers to entry, enabling new investor groups to participate in the growth of the real estate market.
- Enhanced Liquidity: The tokenization of real estate fosters greater market liquidity by digitizing and facilitating the transferability of tokenized shares.
- Cost-Effective Digitization: Streamlining processes through digitization results in significant cost savings by eliminating intermediaries common in traditional financial systems.
- Heightened Transparency: Automation of processes not only reduces costs but also leads to decreased transaction expenses and organizational efforts.
real estate sectorial solution customized by maatDAO
Our Model ensures the orchestrated provision of technological services, guaranteeing a controlled environment where all its components work in an integrated, harmonious, organized and safe way (see maatDAO Core Platform)
The adoption of this Model has allowed maatDAO to guarantee efficient deployment and ready as an instance, allowing comprehensive management depending on the Organization and the Asset in question in each case.
- By way of analogy, we can say that an instance could be understood as the equivalent of a "virtual replica" of a "Seed System"
- Thanks to the advantages provided by the Cloud Computing Model, does not need to be "copied or reinstalled" in opportunity of each new deployment and therefore manage all the DAOs from a single delocalized administration
- It means a substantial increase in the optimization of resources,
- It means too, a significant saving in operating costs
- And a formidable warehouse of consolidated data able to being transformed into information of huge wealth in terms of analysis of patterns and behaviors, key to intelligent and timely decision-making
The ADMIN User will have all the tools available to configure the offer and publish it. You can define the particular attributes and conditions in each case
The Investor will have at his disposal the complete sheet of the Project and he will be able to decide how to integrate his investment, selecting the type of currency or digital currency he wishes to use and the amount of his investment