Red Swan CRE, the commercial real estate company with $5 billion in Assets Under Management (AUM), is launching its token studio on Hedera for Real-World Asset (RWA) tokenization.
Last year, Boston Consulting Group (BCG) predicted that $16 trillion in assets could be tokenized by 2030, with real estate being the largest asset class. BCG is just one of several firms like JP Morgan, Citi Bank, and Goldman Sachs that identify the rapid tokenization of industries like real estate, fund management, and art as key areas of growth.
Tokenization of real estate assets includes increased liquidity, fairer market prices, and a reduction in management fees. This in turn enables increased market participation and lower costs whilst upholding the inherent security benefits of the blockchain.
Recognizing this, Red Swan decided to launch its token studio on the Hedera network. Through this new platform, users will be able to participate in creating and investing in digital security tokenized assets.
By fractionalizing assets on the platform, the studio allows users to own a piece of commercial real estate that has traditionally been out of reach for the smaller investor. These digital shares are tradable 24/7 on the global market – in turn bolstering liquidity.
The team at Red Swan has 65+ years of combined private equity real estate and technology commerce experience and currently has $5B in tokenized assets with an expectation of growing to $25B in the next 36 months.
Red Swan decided to leverage Hedera for its highly optimized and built-for-purpose Hedera Token Service (HTS) that allows RWAs to be tokenized with a best-in-class combination of speed, sustainability, security, and low, fixed fees.
As pioneers in the real estate tokenization space, it is of utmost importance to Red Swan that they can easily adjust and react to shifting regulatory requirements. The native HTS functionalities of optional Know Your Customer (KYC), Anti-Money Laundering (AML), and royalties enforced on-chain mean that they can both issue their tokens as securities as well as adjust their product offering in line with regulatory bodies.
RedSwan can also create ERC-20-compliant securities thanks to the EVM-compatible Hedera Smart Contract Service (HSCS). The token standard for creating compliant digital securities will be open-source code for the Hedera community, available in GitHub.
The platform will accept USD and hUSDC, the USDC stablecoin by Circle that operates on the Hedera network payment rails.
“Red Swan are early pioneers in Real-World Asset (RWA) tokenization, and place among the global leaders in the CRE space,” said Sabrina Tachdjian, Head of Fintech & Payments at The HBAR Foundation. “We are excited to accompany their next stage of growth and innovation, and to support the use of the Hedera network to host billions in tokenized real estate.”
“RedSwan CRE is leveraging its 70 years of combined professional experience to create, issue, and distribute high-quality security token offerings on Hedera,” said Ed Nwokedi, CEO & Founder of RedSwan CRE. “Together with The HBAR Foundation, RedSwan CRE will register millions of real estate investors and provide access, affordability, and liquidity of quality commercial real estate investment opportunities via our high-capacity digital marketplace offerings.”
Founded in April 2018, RedSwan CRE is a blockchain-based marketplace that leverages tokenization technology to fractionalize ownership of commercial real estate, making investments more affordable. Sponsors and private investors now have early liquidity options through issuance and tradability of asset-backed digital securities. Drawing on the team’s deep expertise in real estate, finance, and technology, RedSwan CRE is providing leading-edge capital market solutions for the global real estate capital markets industry.
Photo by CHUTTERSNAP on Unsplash
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