Assets tokenization business - jurisdictions

[Tokenworld]

Hello,

What are the most advanced jurisdictions in terms of tokenization of assets, especially for real estate?

There are some US states (i.e. RealT).
I heard about a Portuguese company, which would offer tokenized villas in Portugal and Mauritius, but I can't find who is this company...

Are there jurisdictions that allow direct tokenization of properties, or is it always the company that owns the property that is itself tokenized (like RealT does)?

I'd love to hear your thoughts, thanks.

Regards

 

[CyprusLawyer101]

Direct tokenization of real estate should be possible however i have never came across it.

Would be happy to hear if anyone has experience or anything valuable to add.

 

[Don]

The Liechtenstein Blockchain Act, formally known as the Token and Trustworthy Technology Service Providers Act (TVTG), came into full effect in January 2020.

• The Act's primary innovation is its creation of the concept of "uncertificated rights" (Token), making it possible to represent rights of all kinds, including ownership of physical assets, in tokens on a blockchain. It essentially means that any right or asset can be tokenized and digitized on a blockchain, and this token can be legally owned and traded.
• The legislation introduces the role of "Physical Validators," who verify the identity and ownership of physical objects that are to be tokenized. This helps to provide a bridge of trust between the physical world and its digital representation.
• Furthermore, the Act sets rules for different service providers in the blockchain space, such as identity service providers, token issuers, and exchange service providers, which ensures a high level of security and consumer protection.
• An overview of the Liechtenstein Blockchain Act
• Whitelabel solutions are available. Estimated costs of such project are EUR 150k one off + 50k share capital and 2.5k/month for maintenance

Estonia has created a supportive environment for blockchain businesses, potentially allowing for property tokenization.

• Due to the possibility of wavering notarization limited liability companies can have unlimited shareholders, which makes it a viable choice for equity based crowdfunding SPV. Raising funds by selling shares to your own customers can be structured as non-public offering and is not regulated.
• Possibility to launch unregulated nft token offering. E.g., case of digital chicken offering where chicken nft holders were eligible to share of profits of the farm, which used it as a method for fundraising, yet it was not treated as a security offering. Here we are talking maybe 5k one off fees for legal setup and low maintenance costs. Technical infrastructure is available at very low cost.

In summary, its important to understand which regulations apply in particular case and what are the compliance obligations.

 

[JohnLocke]

If you choose either Lichtenstein or Estonia you should consult a lawyer just to be clear about the legal point of view. Such things are sometimes more complicated.

 

[CyprusLawyer101]

The Liechtenstein Blockchain Act, formally known as the Token and Trustworthy Technology Service Providers Act (TVTG), came into full effect in January 2020.

• The Act's primary innovation is its creation of the concept of "uncertificated rights" (Token), making it possible to represent rights of all kinds, including ownership of physical assets, in tokens on a blockchain. It essentially means that any right or asset can be tokenized and digitized on a blockchain, and this token can be legally owned and traded.
• The legislation introduces the role of "Physical Validators," who verify the identity and ownership of physical objects that are to be tokenized. This helps to provide a bridge of trust between the physical world and its digital representation.
• Furthermore, the Act sets rules for different service providers in the blockchain space, such as identity service providers, token issuers, and exchange service providers, which ensures a high level of security and consumer protection.
• An overview of the Liechtenstein Blockchain Act
• Whitelabel solutions are available. Estimated costs of such project are EUR 150k one off + 50k share capital and 2.5k/month for maintenance

Estonia has created a supportive environment for blockchain businesses, potentially allowing for property tokenization.

• Due to the possibility of wavering notarization limited liability companies can have unlimited shareholders, which makes it a viable choice for equity based crowdfunding SPV. Raising funds by selling shares to your own customers can be structured as non-public offering and is not regulated.
• Possibility to launch unregulated nft token offering. E.g., case of digital chicken offering where chicken nft holders were eligible to share of profits of the farm, which used it as a method for fundraising, yet it was not treated as a security offering. Here we are talking maybe 5k one off fees for legal setup and low maintenance costs. Technical infrastructure is available at very low cost.

In summary, its important to understand which regulations apply in particular case and what are the compliance obligations.

Thank you

 

[JackAlabama]

Hello,

What are the most advanced jurisdictions in terms of tokenization of assets, especially for real estate?

There are some US states (i.e. RealT).
I heard about a Portuguese company, which would offer tokenized villas in Portugal and Mauritius, but I can't find who is this company...

Are there jurisdictions that allow direct tokenization of properties, or is it always the company that owns the property that is itself tokenized (like RealT does)?

I'd love to hear your thoughts, thanks.

Regards

Switzerland has this emerging.