ONLINE real estate investment platform Fraxtor announced it had obtained in-principle approval for its Capital Markets Services (CMS) licence from the Monetary Authority of Singapore (MAS) to deal in capital market products.
The CMS licence will enable Fraxtor to issue security tokens including debentures and collective investment schemes that comprise capital market products, and which are not covered under the current dealing exemptions.
The platform uses smart contracts to create security tokens – which can represent units of debentures, bonds or collective investment schemes – issued on the Ethereum network under the ERC-1404 security token standard.
The value of such tokens is not affected by fluctuations in the cryptocurrency markets as they perform based on the underlying real estate investment, said Fraxtor.
In its press statement, the Singapore-based fintech announced additional plans to partner property fund managers from Europe and Australia to offer real estate security tokens to accredited investors and institutional investors.
“By partnering established fund managers and developers with expertise in niche asset classes or geographical focus, Fraxtor expands investors’ access to private equity real estate investments with a low capital outlay,” added the firm.
Fraxtor said it previously worked with various fund managers to offer overseas development deals that include purpose-built student accommodation in the UK, as well as long-term care homes in Canada.
Said Fraxtor’s co-founder Oliver Siah: “Our platform allows investors to gain exposure to these unique real estate deals not commonly accessible, from as low as S$20,000. This significantly lowers the entry barriers for investors to access such funds which typically require minimum investment commitments of S$500,000 to S$1 million from investors.”