There's a company based out of Stamford says that it believes that tokenization is the future of real estate investment.
REINNO tokenized a $105 million commercial real estate (CRE) fund last month, and on Feb. 18 tokenized its own building, which also houses Moniês’ IT firm Computronix. It is the first such deal in Connecticut, and one of the first commercial properties to undergo tokenization in the U.S.
“We believe we’re right on the cutting edge” of tokenization, Barry Moniês, cC-Founder of REINNO, said at the firm’s office at the Stamford Technology Center (STC) at 970 Summer St. “This is an alternative to traditional real estate financing, which is very restrictive and expensive to get into — and it’s been approved by the SEC (Securities and Exchange Commission).”
Real estate tokenization creates a digital representation of equity and/or debt in the form of securitized digital tokens. As Moniês explained, it is a tool that promises to make financing and capital raising easier, faster, more efficient and secure.
While most tokenized properties are offered to investors in the form of security token offerings, in the case of the STC, the owners are not planning to sell. Instead, Moniês said, they will use tokens as loan collateral.
REINNO has a proprietary risk assessment model that allows it to almost instantly lend money against CRE tokens — an approach Moniês said breaks from the traditional, “inefficient” CRE model, which involves working with banks, lawyers and title companies when borrowing against real estate.
That approach, he said, can be complicated, time-consuming and “closed to all but the big boys.”
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