07.24.2019

German Regulator Approves Blockchain Real Estate Bond

07.24.2019

Fundament Group, the Germany-based end-to-end security issuance solution for asset tokenization, has received approval from the German Financial Market Supervisory Authority (BaFin) to distribute the country’s first blockchain-based real estate bond.

The bond is backed by a portfolio of properties in major cities throughout Germany and has an issued volume of €250 million.

Based on the Ethereum blockchain, Fundament’s solution leverages standardised and regulated financial instruments to build a globally tradable asset class that is backed by real estate projects. As the first-ever real-estate backed security token regulated by BaFin, the Fundament Real Estate Token securitizes a right or share certificate using a digital token. With the Real Estate Token, investors can finally liquidate their investment at any time they want on designated secondary markets. The token is tradable worldwide, at any time and independently of banks. Thanks to this new feature, the Fundament Real Estate Token is injecting liquidity into traditionally illiquid real estate investments.

Florian Glatz, Co-Founder of the Fundament Group, said, “As the first company to receive approval from the German Financial Market Authority for a blockchain-based real estate bond, we are excited to enter the sales process for the Real Estate Security Token, while already preparing the tokenization of other highly attractive assets.”

Backed by a team of experienced lawyers, political advisors and real estate developers, the Fundament Group creates a link between the traditional capital market and digital, blockchain-based financing. Providing investors worldwide with access to the German real estate market via its tokenized bonds, Fundament also provides investors with the flexibility to decide whether to make deposits and withdrawals denominated in Euros or in the cryptocurrency Ether.

The Fundament Group invests primarily in commercial project developments with a focus on properties in major urban centers throughout Germany, including Berlin, Hamburg, Rostock, Jena and Fulda, which it holds in its own portfolio in the medium- to long-term.

Source: Fundament Group

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