Tykhe Capital Group Limited has announced the launch of PRINCE Token, marking it as the initial real estate fund security token offering (STO) in Hong Kong available to Professional Investors.

This is the first STO permitted under the regulations of the Securities and Futures Commission (SFC) of Hong Kong, and the STO is backed by Tykhe’s virtual asset licenses and its proficiency in Web 3.0.

STO in Real Estate

PRINCE Token represents a new venture in the realm of real estate investment. Managed by Pioneer Asset Management Limited, a subsidiary of Tykhe, the digital securities offer an investment opportunity in a five-unit retail property located in Prince Edward, Kowloon.

Entry and Storage

The STO is set at a minimum subscription amount of HK$1,000, contrasting with the typical US$1 million for private real estate funds. Investors holding PRINCE Tokens stand to benefit from the annual rental income of the property and potential appreciation in its value. The tokens will be stored with ON1ON Custody, a subsidiary of Tykhe, which offers security and insurance for the assets. Additionally, PRINCE Tokens will be recorded on the public Ethereum blockchain, facilitating potential secondary market transactions.

Financing Implications

The introduction of the PRINCE Token provides alternative financing avenues for property investors and developers. Tokenization can offer benefits such as reduced capital costs and increased flexibility when compared to traditional financing channels. The model also potentially broadens the base of professional investors.

Regulatory Environment

Dr. Gao Han, Chairman of Tykhe Capital Group Limited, mentioned the significance of this STO in the context of Hong Kong’s regulatory landscape. The recent reopening of the Hong Kong-China border and various governmental initiatives indicate a conducive environment for such tokenization ventures.

Tykhe’s PRINCE Token initiative represents a novel approach to real estate investment in Hong Kong, signalling potential changes in the broader landscape of digital finance in the region.

Photo by Steven Wei on Unsplash

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